Contract negotiations between healthcare providers and insurers are often tense, and the current standoff between Legacy Health and Regence BlueCross BlueShield of Oregon is no exception. Legacy is warning 200,000 of its clients that their healthcare costs could rise significantly if contract negotiations with Regence fail.
If a deal is not reached by the end of Sunday, patients insured with Regence may find their providers out of network, resulting in higher costs for their care. The potential price increase hinges on whether Legacy can come to an agreement with Regence before the April 1 contract termination date.
Merrin Permut, Legacy’s chief population health officer, advised patients to contact their insurance company to inquire about the differences between in-network and out-of-network costs if an agreement is not reached. Patients with appointments after March 31 were also advised to take action to protect themselves from higher costs.
The brinkmanship approach often used in contract negotiations has been employed by both sides in this conflict. Negotiations earlier this year between Providence Health & Services and Regence resulted in a new agreement being reached on the final day of the contract. However, in this standoff between Legacy and Regence, both sides have exchanged tough rhetoric in press releases.
Regence stated that they offered Legacy a competitive contract on March 8 but have yet to receive a response from the provider. Legacy countered by suggesting that Regence has the financial means to compromise on the contract terms, citing recent profits compared to losses following the COVID-19 pandemic at Legacy Health.
Legacy reported a $172 million loss last fiscal year while Regence recorded 4.8% profits on $2.83 billion in revenue. As negotiations continue, uncertainty looms for Legacy patients who may face higher prices if an agreement is not reached before April 1st.
In conclusion, it’s important for patients insured with Regence to take action now to protect themselves from potential price increases or out-of-network providers if an agreement is not reached soon between Legacy and Regence BlueCross BlueShield of Oregon.
