As contract negotiations between the University of Alabama at Birmingham Health System and UnitedHealthcare are ongoing, state officials said Wednesday any changes won’t affect Alabama educators or retirees.
The Public Education Employees Health Insurance Plan currently uses UHC for its Medicare-eligible members.
“We are pleased to inform you that UnitedHealthcare has confirmed that PEEHIP members may continue to receive services from UAB and its affiliates at no additional cost to either members or the PEEHIP plan,” a Wednesday statement from the plan said.
“… UAB will continue to provide care regardless of whether members are considered in-network or out-of-network under UnitedHealthcare’s plan. This means there will be no disruption in services provided by UAB and its affiliates.”
UnitedHealthcare has confirmed that PEEHIP members may continue to receive services from UAB and its affiliates at no additional cost to either members or the PEEHIP plan. There will be no disruption in services provided by UAB and its affiliates.https://t.co/3QIncjhLTy
— PEEHIP (@peehip) July 2, 2025
UnitedHealthcare and UAB have until the end of the month to reach a new contract. Patients with United coverage have access to UAB sites this month as talks continue.
If an agreement is not reached by the end of the month, services for United members would be considered out-of-network at dozens of UAB-owned and affiliated sites, including the UAB hospital, UAB’s primary, specialty and urgent care clinics and Baptist Health in Montgomery.
“We are deeply disappointed that UnitedHealthcare has created this uncertainty for our patients,” said UAB Health System CEO Dawn Bulgarella said in a statement last month. “We will continue to diligently negotiate with
United in good faith to reach a reasonable agreement before July 31. Our goal is to remain a
participating provider and continue delivering the highest-quality care to the people of Alabama. We encourage patients and employers to contact United and express the importance of keeping UAB Health System entities in-network.”
United last month said UAB is one of the most expensive health systems in the Southeast, “yet they’re demanding a near 30% price hike for our employer-sponsored commercial plans as well as a significant rate increase for our Medicare Advantage plans.”
“Agreeing to UAB’s demands would significantly increase premiums and out-of-pocket costs for consumers as well as the cost of doing business for employers,” the insurer said.
A full list of UAB facilities that would be considered out-of-network if the contract ends is available here.
The State Employees Insurance Board does not currently use UnitedHealthcare for its coverage.