UnitedHealthcare launches rural Medicare Advantage pilot to cut reimbursement delays 50%
UnitedHealthcare, the insurance arm of UnitedHealth Group, announced Wednesday that it was launching a program to look at speeding up Medicare Advantage reimbursement payments to hospitals by 50%, with the specific target of independent rural facilities.
The pilot program will impact hospitals in multiple states and speed up prior authorization hurdles that typically delay reimbursement. The company confirmed the initiative will last six months, with the goal of reducing payments from 30 days to 15.
Hospitals in Oklahoma, Idaho, Minnesota and Missouri are said to be participating, but UnitedHealth did not offer any specific names.
The company did say, however, that the targets were picked based on financial need in what is a larger part of an effort to re-shape its approach to rural healthcare, where the business strategy may involve reimbursing providers more quickly based on their economic volatility.
Insights gained from this first run could lead to a change in policy and expanded rapid reimbursement elsewhere, the company said.
The insurer emphasized that rural facilities are “critical” for millions of Americans, yet current economic conditions have left them vulnerable to closure.
“Our goal is to co-create solutions with rural providers that support accessible care close to home,” Bobby Hunter, CEO of UnitedHealthcare’s government programs division, said in a statement.
UnitedHealthcare is the largest Medicare Advantage insurer nationwide, covering some 8 million Americans. Rural hospitals, which serve a disproportionate number of elderly and vulnerable patients who rely on government programs including Medicare Advantage, often have only one provider to choose from—that being the one hospital in their area.
Delays in prior authorization have been criticized as negatively impacting patient health and leaving providers in limbo, unsure if the care they deliver will be paid for.
It remains to be seen if this pilot will improve the situation regionally, let alone nationwide.
‘Denied, delayed’ care
In October, Ballad Health, a rural hospital system based in Tennessee, filed a lawsuit against UnitedHealth, alleging it “systematically denied, delayed or underpaid” claims for medically necessary care.
The complaint is focused on Medicare Advantage plans, where Ballad alleges that UnitedHealthcare has refused to properly reimburse care for sick patients. The hospital group said the claim denials have contributed to longer hospital stays and delayed discharges—with particular troubles linked to denied care for physician-ordered post-acute care, like rehabilitation.
As a safety-net system serving largely rural and government-insured populations, Ballad has a 50% roster of patients on Medicare, many through Medicare Advantage. The health system plans not to renew its Medicare Advantage contract with UnitedHealth when it expires in 2027, though it will continue accepting other UnitedHealth plans and traditional Medicare and Medicaid.
The October 2025 lawsuit is still pending.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.