When it comes to health insurance and employee benefits, you may have heard of both UMR and UnitedHealthcare. But what exactly is the relationship between these two companies? Are UMR and UnitedHealthcare the same entity? Or are they completely separate organizations?
This article will clarify the connection between UMR and UnitedHealthcare and explain how they work together to provide services to employers and their employees.
UMR is a third-party administrator (TPA) that provides administrative services for companies that choose to self-fund their employee health plans.
As a third-party administrator, UMR’s key responsibilities include:
In essence, UMR handles the day-to-day administration of health plans so self-funded employers don’t have to build these competencies in-house.
UMR has over 70 years of experience serving self-funded employers. Today, they administer health plans for over 5 million members across the United States.
UnitedHealthcare is one of the largest health insurers in the United States. It offers a wide range of insured health plan options for employers, individuals, and public sector clients.
As an insurance carrier, UnitedHealthcare’s core offerings include:
In addition to comprehensive commercial health benefits, UnitedHealthcare provides employers with absence management, disability, workers’ comp, clinical care management, and other ancillary services.
Yes, UMR is part of UnitedHealthcare and has been for over 20 years. UnitedHealthcare acquired UMR in 1999 and operates UMR as a standalone division within the UnitedHealthcare family.
Specifically, UMR functions as UnitedHealthcare’s third-party administrator, serving self-funded employers that want customized administrative services rather than fully insured plans.
While part of UnitedHealthcare, UMR maintains its own brand, management team, account services model, and operating approach tailored to the needs of self-funded employers.
UMR and UnitedHealthcare work hand-in-hand to support employers across the health benefits spectrum, leveraging shared capabilities when it makes sense.
Here are some of the key ways UMR complements UnitedHealthcare’s offerings:
With UMR in its stable, UnitedHealthcare can offer both fully insured plans and self-funded administrative services to meet each employer’s needs.
UMR leverages UnitedHealthcare’s shared technology platform, enabling real-time data exchange and a connected experience for members, employers, and providers.
UMR clients and members get comprehensive provider network access through UnitedHealthcare’s contracts. This includes over 1.2 million providers nationwide.
As part of a large, diversified enterprise like UnitedHealthcare, UMR offers clients added scale, stability, and resources they may not find with standalone TPAs.
UMR can tap into UnitedHealthcare’s vast budget for developing innovations like digital member tools, analytics, transparency solutions, and more.
UnitedHealthcare’s portfolio of ancillary benefits like dental, vision, life, and disability integrates smoothly with UMR’s health offerings.
UMR leverages UnitedHealthcare resources like preventive care guidelines, utilization management, and care management programs.
UMR applies UnitedHealthcare’s accumulated expertise in pharmacy benefit management, claims editing, and other cost control tactics.
While part of the UnitedHealthcare enterprise, UMR operates distinctly from UnitedHealthcare’s health insurance units in important ways:
UMR specializes in group health plan administration whereas UnitedHealthcare specializes in health insurance and underwriting.
UMR utilizes high-touch, single point of contact, while UnitedHealthcare uses tiered approaches by customer size.
UMR administers claims on its legacy platform tailored to self-funding while UnitedHealthcare uses platforms optimized for insurance.
UMR maintains its own distinct brand and identity that employers recognize and trust.
UMR has dedicated account management teams who get to know each self-funded client’s priorities and culture.
UMR staffers possess deep expertise in self-funded plan administration versus insurance operations.
UMR exclusively serves self-funded employers whereas UnitedHealthcare primarily serves insured employer groups.
UMR helps clients tailor self-funded plans while UnitedHealthcare offers preset, regulated insured products.
As a TPA, UMR avoids state insurance regulations while UnitedHealthcare must comply as a licensed insurer.
UMR delivers unique advantages as a standalone TPA that make it an attractive option for self-funded employers:
With a sole focus on self-funding, UMR is 100% dedicated to this niche, not divided across multiple products.
UMR offers truly independent support and guidance, with no vested interest in recommending insured plans.
UMR’s systems and processes are built for adaptation to each client’s changing benefit needs versus strict insurance regulations.
As a TPA, UMR provides full pricing transparency with disclosed fees versus insurers’ bundled premiums.
UMR returning profits to clients in strong years provides potential long term savings versus insured premiums.
UMR enables tailored plan design and personalized support unlike the one-size-fits-all nature of insurance.
Clients maintain control over their plans, from design to cost management, when self-funding with UMR’s partnership.
UMR readily provides data feeds and connections to sync with HRIS, payroll, wellness programs, and other platforms.
With UMR, each member interacts directly with their employer’s dedicated team versus a large insurance company.
While operating distinctly, UMR unlocks unique advantages for self-funded employers by being part of UnitedHealthcare:
UMR clients gain economies of scale, technology, and added resources from UnitedHealthcare they wouldn’t access as a standalone TPA.
UMR delivers coast-to-coast service capabilities leveraging UnitedHealthcare’s infrastructure versus a regional TPA’s footprint.
UnitedHealthcare’s network contracts and discounts pass through to UMR clients, providing savings self-funded groups couldn’t achieve independently.
UMR and UnitedHealthcare data integration provides insights and innovations not possible between disconnected TPAs and carriers.
UMR clients benefit from clinical excellence, care standards, and innovations driven by UnitedHealthcare’s massive care delivery system.
UnitedHealthcare’s full portfolio integrates smoothly with UMR’s health plan administration.
UMR offers virtually guaranteed renewability versus independent TPAs who could go out of business or drop a plan.
The UnitedHealthcare brand provides credibility and instant recognition for UMR versus having to build trust from scratch.
To recap the key points:
Did UnitedHealthcare buy UMR?
UMR is a UnitedHealthcare company .What is the UMR also called?
United Medical Resources , subsidiary and third party administrator for United Healthcare Services Incorporated, a medical insurance provider.
What did UnitedHealthcare used to be called?
United HealthCare Corporation was founded in 1977 to purchase Charter Med and create a network-based health plan for seniors. It became a publicly traded company in 1984 and changed its name to UnitedHealth Group in 1998.
What is the difference between UnitedHealthcare and UnitedHealth?
UnitedHealthcare is the health benefits business of UnitedHealth Group , a health care and well-being company working to help build a modern, high-performing health system through improved access, affordability, outcomes and experiences.