UAB Health System May Cut Ties with UnitedHealthcare Over Financial Disputes
By Savannah Tryens-Fernandes | AL.com
BIRMINGHAM, AL – June 12, 2025 – The University of Alabama at Birmingham (UAB) Health System is considering ceasing acceptance of UnitedHealthcare insurance due to ongoing contract disputes characterized by high denial rates and unsatisfactory reimbursement terms. Patients insured by UnitedHealthcare could find themselves responsible for medical costs incurred at UAB starting August 1, 2025, unless a new agreement is reached by the end of July.
Dawn Bulgarella, CEO of UAB Health System, expressed disappointment with the current situation, stating that the uncertainty created for patients due to UnitedHealthcare’s actions is troubling. “Our goal is to remain a participating provider and continue delivering the highest-quality care to the people of Alabama,” Bulgarella emphasized, urging patients and employers to contact UnitedHealthcare to underscore the importance of maintaining in-network coverage for the UAB Health System.
This impending change would affect all UAB facilities and services, including those provided by UAB-employed physicians in locations such as Children’s of Alabama hospital and St. Vincent’s facilities. Concerns extend to both commercial plans and Medicare Advantage enrollments.
In a response to inquiries, UnitedHealthcare indicated that negotiations are ongoing. However, they expressed concerns that UAB’s demands would lead to a significant increase in premiums and out-of-pocket costs for consumers. “UAB is already one of the most expensive academic health systems in the Southeast,” a spokesperson mentioned, noting that the proposed double-digit price hikes for commercial plans and additional increases for Medicare Advantage could make UAB one of the costliest providers in their network nationally.
UAB Health System, being the largest health provider in Alabama, serves approximately 1.4 million patients, representing over a quarter of the state’s population. However, the health system has voiced frustrations commonly echoed by other hospitals nationally regarding UnitedHealthcare’s practices, pointing to issues like below-market reimbursement rates, a high rate of claim denials, and delayed payments.
Bulgarella stated, “UAB is committed to high-quality care and cannot accept terms from United that would compromise our ability to serve the patients and communities who depend on us.” She further remarked that UnitedHealthcare’s approach has prompted several breakdowns in negotiations with various healthcare providers, leading to uncertainties for many hospitals.
Other health systems, like Baptist Health Montgomery, which serves over 57,000 patients from 17 counties, are also entangled in similar disputes with UnitedHealthcare. Meanwhile, Huntsville Hospital Health System, which had previously issued a termination notice to UnitedHealthcare, managed to renew their contract after negotiations.
In light of these developing issues, UAB has advised patients seeking clarity regarding their insurance coverage to contact the number listed on the back of their insurance cards for guidance on in-network physicians and hospitals.
In addition to UnitedHealthcare, UAB Health System continues to accept various other insurance providers, including:
- Blue Cross Blue Shield of Alabama
- Cigna Healthcare
- Health Care Service Corporation (Formerly Cigna HealthSpring)
- Humana Medicare Advantage Plans
- Viva Health
- Aetna
- Ambetter Individual and Family Plans
As negotiations progress, patients will be closely monitoring the situation to ensure access to their preferred healthcare services.
Share this article:
