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ProHealth forms ACO with United Healthcare

Connecticut medical group ProHealth Physicians said it has entered into an accountable-care arrangement with United Healthcare for the insurer’s commercial plans.

Approximately 11,000 people will be included in the ACO, which includes both United Healthcare and Oxford Health-branded plans.

Incentivized by the Affordable Care Act, or Obamacare, ACOs reward providers that deliver lower costs and quality health outcomes to large groups of patients. Obamacare launched ACO programs for Medicare beneficiaries, but insurers have also adopted various iterations of ACOs on a commercial level.

United Healthcare said last year that it planned to more than double its annual spending on value-based contracts, to $50 billion by 2018.

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ProHealth also has an ACO agreement with Aetna, and last year launched a Medicare ACO.