Walmart And UnitedHealth Group Launch Medicare Advantage Partnership

Walmart and UnitedHealth Group are rolling out a major partnership to provide healthcare services and “improve the patient experience” for Medicare Advantage enrollees in certain markets across the country.

The 10-year collaboration announced Wednesday between the retail giant’s fast-growing Walmart Health business and UnitedHealth’s Optum health services will begin in 2023 in Florida and Georgia where Walmart Health has a combined 15 locations. Eventually, the collaboration will be expanded across the U.S., serving Medicare Advantage health plan enrollees no matter which health plan seniors choose.

“This is Walmart being able to be provide care to all seniors 65 plus and for everyone who is eligible in Medicare Advantage plans,” Dr. Cheryl Pegus, executive vice president of Walmart Health & Wellness said in an interview. “No matter who your insurer is, this 10-year collaboration is going to enable us to deliver the care needed, first in Georgia and Florida.”

Medicare Advantage plans contract with the federal government to provide extra benefits and services to seniors, such as disease management and nurse help hotlines with some also offering vision, dental care and wellness programs. And in recent years, the Centers for Medicare & Medicaid Services has allowed Medicare Advantage plans to cover more supplemental benefits, adding to their popularity among seniors.

Across the country, health insurers have escalated expansions into new areas, pushing Medicare Advantage enrollment to record highs. Medicare Advantage plans added more than 2 million beneficiaries for this 2022 coverage year, boosting the program to 45% of all Medicare enrollment, according to a study earlier this year by The Chartis Group.

Over time, the collaboration could mean hundreds of thousands of new customers for both Walmart and UnitedHealth Group, which is already the biggest provider of Medicare Advantage coverage via its UnitedHealthcare health insurance business. UnitedHealthcare is the nation’s largest health insurer and includes 7 million Medicare Advantage enrollees.

“We’re on a journey to transform health care, connecting more people to the right care at the right time — at a cost that makes sense,” Walmart chief executive officer Doug McMillon said in a statement. “This collaboration puts the patient at the center of health care by leveraging the strength and complementary skill sets of our two companies to accelerate access to quality care.”

UnitedHealth chief strategy and growth officer Dan Schumacher said Optum’s role in the collaboration will be to help Walmart clinicians through Optum’s vast data and related analytics designed to improve patient outcomes. The Optum unit of UnitedHealth Group owns and operates hundreds of doctor practices, outpatient clinics, surgery centers and group practices as well as an analytics operation that uses data from its health plans and providers to improve care and outcomes.

Walmart Health facilities feature an array of primary medical services, urgent care including X-ray services, dental and eye care, and behavioral health services as part of a new model being replicated in several markets across the U.S.

The collaboration is expected to grow over time and spread to other markets across the country, which could mean a huge influx of seniors into Walmart Health locations and potentially more subscribers to UnitedHealth Group’s Medicare Advantage plans. The collaboration will also be working on new health plans created by UnitedHealth and Walmart.

Beginning in January, the collaboration will include a co-branded Medicare Advantage plan in Georgia called “UnitedHealthcare Medicare Advantage Walmart Flex.” And another plan will launch in January called “Walmart Health Virtual Care,” which will be “in network for commercial members in UnitedHealthcare’s Choice Plus PPO plan, giving consumers another option to access care when and where they want it,” the companies said Wednesday.

“UnitedHealth Group and Walmart share a deep commitment to high-quality and affordable primary care led services that address all of a patient’s health needs in ways that are convenient for them and improve health outcomes,” said Andrew Witty, chief executive officer, UnitedHealth Group.