UnitedHealthcare expands virtual primary care service

UnitedHealthcare announced at the Consumer Electronics Show 2021 that it will expand its virtual primary care services.

The health benefits unit of UnitedHealth Group Inc. revealed that it has updated a policy to promote the use of virtual care and allow eligible members to meet with their physicians virtually. The policy applies to fully insured and self-insured employer plans starting Jan. 1, the Minnetonka, Minn.-based company said.

The company also unveiled a new virtual primary care service that will make it easier for plan holders to access medical services in primary care settings. The service is offered to certain employer-sponsored fully insured or self-funded health plans in 11 states but is likely to be expanded to more states this year. An unnamed telehealth provider was cited as a partner for the service.

According to BTIG analyst David Larsen, Amwell is possibly UnitedHealthcare's undisclosed telehealth partner and the Boston-based company's shares have traded up because of the announcement.

The telehealth company's shares rose 13.58% to $28.68 as of 3:59 p.m. ET on Jan. 14.

Analysts noted that UnitedHealthcare has had partnerships with multiple telehealth companies for years, including Amwell and Teladoc Health Inc. They expect Amwell to see revenue growth of between 20% and 25% year over year in 2022 and 2023.

In contrast, Teladoc's shares dropped by 2.70% to $225.54 as of market close Jan. 14. However, analysts believe Teladoc will soon provide virtual primary care services to UnitedHealthcare members, considering that the two companies have a good relationship. Teladoc started onboarding 15 million UnitedHealthcare commercial members in the third quarter of 2019.