Spotlight On: Tim Archer, CEO, New England, UnitedHealthcare, Employer & Individual
June 2023 — UnitedHealthcare New England CEO Tim Archer spoke with Invest: about the simplification of healthcare, what makes Boston a great place to do business and how technology is changing the payer environment. “The metro area has grown significantly with downtown development. As a result, it creates a large and growing industry base to whom we can sell our services,” he said.
How is UnitedHealthcare positioned in the Boston region?
UnitedHealth Group has over 5,000 people working in the Massachusetts market, with a good proportion in the Boston metro area. We serve over 560,000 people across all our business segments. In commercial, for which I am responsible, we have seen growth in the past few years across all sizes and funding arrangements, which is exciting. We are seeing affordability and access to care as top priorities in the commercial market, followed closely by continued product innovation. Our network is commensurate with every other carrier in that market. UnitedHealthcare is positioning itself as a stand-out care option in the market.
What makes Boston a great market for the healthcare industry?
It starts with the economy – there are many schools in the area that create a strong foundation for economic development, workforce development and a steadily growing population. And the metro area has grown significantly with downtown development. As a result, it creates a large and growing industry base to whom we can sell our services. Our customer base includes a wide range of businesses including academia, manufacturing, and nonprofit organizations so we can service a variety of industries extremely well.
How would you describe the role of UnitedHealthcare in the Boston region?
The commercial market in Massachusetts has over 4 million available members, with a significant amount in Boston metro. We feel uniquely positioned given the size of the market, the types of companies here and the demands for simple, affordable and innovative products.
Besides commercial, we participate and have been very successful in the Medicare Advantage market. Our sister organization, Optum, has a significant footprint in the state as well.
What notable changes in demand for services have you noted?
Demand for virtual and behavioral services have greatly increased. From pre-pandemic to pandemic, we saw a big spike in virtual access requirements and capabilities. We absolutely provide that as a component of our common core benefits and have continued to work with our providers to enhance their virtual offerings.
Post-pandemic, some of that utilization has eased in the general area with a return to in-person visits, save for behavioral health. Behavioral health has overwhelmingly remained a virtual demand post-pandemic and I believe that is here to stay. We have seen more utilization in that space as a result of the challenges of the pandemic and the pressures placed on society, as well as the ease of access for the patient and the provider.
What is the state of access to quality healthcare?
We know barriers to quality healthcare access include things like geography, transportation, and time restraints. When people need immediate care, they don’t want to wait long to be seen. And unlike an annual wellness visit, this is not always something you can schedule in advance. So UnitedHealthcare has built a virtual care capability into our platform, giving our members 24/7 access to primary or urgent care in a virtual format anywhere and anytime. This is a complementary service of ours that will not replace or inhibit needed in-person care. Instead, it serves as a great additional capability that will continue to be used long term and can meet the member where they are.
What key partnerships have you created within the Boston area?
One of our key commitments is to build healthier communities where we live and work. Last year our local employees volunteered over 64,000 hours and we invested over $1.2 million to improve health in the Boston area. We have a long-standing partnership with the Kraft organization and are the shirt sponsor for the New England Revolution which we have used to promote health activities among children. We have worked with the local provider community to provide 14 grants to children with health needs through our UnitedHealthcare Children’s Foundation. We are active in the local healthcare community and sit on the boards of local healthcare organizations such as Massachusetts Association of Health Plans and the New England Employee Benefits Council (NEEBC). From a labor perspective, we have always provided internships through partnerships with local colleges and universities. They then matriculate from an intern position to a full-time role over the years. Our internship program is something UnitedHealthcare will continue to focus on and expand. Lastly, we have provided local scholarships through our diverse scholars program.
What is your outlook for the region’s healthcare industry in the near term?
We expect continued demand for simple and affordable solutions in a modern mobile first way. Consumers will expect quicker access to care and price transparency – all things UnitedHealthcare is constantly delivering through products like Surest, our popular copay only product.
UnitedHealthcare is focused on the simplification of the healthcare system. Beginning in Q3 2023, we are reducing approximately prior authorizations representing nearly 20% of total volume companywide as part of a comprehensive effort to simplify the healthcare experience for consumers and care providers. The effort will begin in the third quarter of 2023 and continue through the year for most commercial, Medicare Advantage and Medicaid plans. These prior authorization changes will result in quicker access to care and are intended to reduce confusion and abrasion. In early 2024, UnitedHealthcare will implement a national Gold Card program for care provider groups that meet eligibility requirements, eliminating prior authorization requirements for most procedures. This will be effective for most UnitedHealthcare members across our businesses, including Commercial, Medicare Advantage and Medicare. Our focus will continue to expand upon this idea, as we improve value-based care as opposed to a fee approach.
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