AP Health Writer (AP) —
The health care giant said Tuesday that it will pay
UnitedHealth, which runs the nation's largest health insurer, will add
The deal represents “a nice strategic fit” for Optum, given the growth potential in home health care and UnitedHealth's Medicare Advantage coverage,
Medicare Advantage plans are privately run versions of government-funded Medicare coverage for people who are 65 or older or those who have certain severe disabilities.
It provides nurses and home health aides who care out doctor treatment plans and therapists who offer physical, occupational and speech therapy. LHC also provides end-of-life hospice care through 170 locations.
Health insurers and other payers have been emphasizing home-based care more in recent years, a trend fueled by the COVID-19 pandemic. They expect this type of care to remain popular as the
Patients generally prefer home health care. Technology improvements also allow for more care to be provided at home, and payers see the practice as a good alternative to expensive stays in hospitals or care centers when possible.
Health insurers also have been emphasizing more regular care for their customers in order to keep people healthy and out of hospitals.
Last year, UnitedHealth rival and Humana spent
UnitedHealth and Humana are the two largest providers of privately run Medicare Advantage plans in
UnitedHealth said Tuesday that the deal will be neutral to its 2022 adjusted earnings forecast but will modestly help it next year.
Shares of
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