Universal American Accountable Care Organization in the Maryland/Virginia Region Chosen as a Medicare Next Generation ACO

Innovative model recognizes primary care physicians’ history and success in coordinating care

Universal American Corp. (NYSE:UAM) announced that Accountable Care Coalition of Chesapeake, LLC (ACC Chesapeake), an accountable care organization formed in partnership with primary care physicians, was chosen by the Centers for Medicare and Medicaid Services (CMS) to participate in the Next Generation ACO Model beginning on January 1, 2017. The Next Generation ACO Model is a value-based payment model that encourages providers to assume greater risk and reward for improving the quality and reducing the cost of healthcare of Medicare Fee-For-Service beneficiaries.

In partnership with Collaborative Health Systems (CHS), a Universal American subsidiary, the 200 providers of ACC Chesapeake will serve more than 28,000 Medicare beneficiaries in the Maryland/Virginia region. The selection recognizes the success these physicians have had as participants in Medicare Shared Savings Program ACOs in which they have been responsible for coordinating care to improve healthcare outcomes while lowering costs.

Under the Next Generation ACO Model, ACC Chesapeake primary care physicians will have stronger financial incentives and tools at their disposal to engage beneficiaries and provide care to enhance Medicare Fee-For-Service. For instance, telemedicine services received at a beneficiary’s home will be covered and allow physicians to offer care through telephonic, online, and other electronic communications. Enhanced access to skilled nursing facilities will enable beneficiaries to enter a facility without a three-day inpatient hospital stay.

Jeffery Spight, President of CHS, spoke about the providers’ success in adapting to value-based care models and taking on increasing levels of risk. “We are honored that ACC Chesapeake was chosen to participate as a Next Generation ACO. Since 2013, the providers in this ACO have worked hard and demonstrated their ability to effectively coordinate care for their patients as participants in the Medicare Shared Savings Program. Now as participants in a Next Generation ACO, these providers are well-positioned to take on a higher degree of accountability for their patients’ healthcare to be measured by improvements in quality of care and lower healthcare expenditures.”

Vinu Ganti, M.D., member of the ACC Chesapeake Management Committee, spoke about the recent announcement and partnership with Collaborative Health Systems. “We are delighted to be chosen for the Next Generation ACO Model. This selection reflects the successful collaboration between our providers and the CHS team. We look forward to continuing to work with CHS as we advance our ability to engage with beneficiaries in new ways to improve health.”

ACC of Chesapeake is Universal American’s second Next Generation ACO Model. The first one, the Accountable Care Coalition of Southeast Texas, began in January 2016 and is based in Houston, Texas.

About Universal American Corp.

Universal American (NYSE: UAM), through our family of healthcare companies, provides health benefits to people covered by Medicare. We are dedicated to working collaboratively with healthcare professionals, especially primary care physicians, in order to improve the health and well-being of those we serve and reduce healthcare costs. For more information on Universal American, please visit our website at www.UniversalAmerican.com.

About Collaborative Health Systems

Collaborative Health Systems (CHS), a Universal American company (NYSE: UAM), is a management services organization that partners with primary care physicians as they move to value-based payment systems. Our core belief is that primary care physicians are in the best position to influence the quality and cost of healthcare. CHS provides comprehensive support for its physician partners by providing actionable data to help coordinate care and helping practices change behavior to meet the new quality requirements of the value-based payment system. In 2017, CHS manages two Next Generation Model ACOs and 16 MSSP ACOs, with more than 5,200 providers, mostly primary care physicians, covering 222,000 Medicare beneficiaries. In addition, CHS partners with physician groups that have come together to form Independent Physician Associations (IPAs). For more information, visit www.CollaborativeHealthSystems.com.

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Universal American Corp.Sarah Bell, 914-597-2908sbell@universalamerican.com

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