In the midst of ongoing contract negotiations, Legacy Health has issued a warning to its 200,000 customers in Oregon that their healthcare costs could significantly increase if a new agreement is not reached with Regence BlueCross BlueShield of Oregon. If the contract expires on Sunday without a new agreement in place, patients insured with Regence could find that their providers are out of network, resulting in higher costs.
Legacy’s chief population health officer, Merrin Permut, has notified patients of the potential contract termination and advised those with scheduled appointments after March 31 to contact their insurance company for information on in-network vs. out-of-network costs. The stakes are high as both sides seem to be taking a tough stance in negotiations. While it is not uncommon for contract negotiations to have moments of brinkmanship, both parties seem determined to hold their ground.
Regence claims they offered Legacy a competitive contract that has not yet been accepted or rejected. However, Legacy points out that Regence has been profitable and stockpiling cash while healthcare providers like Legacy have been struggling in the wake of the COVID-19 pandemic. The financial disparity between these two entities is significant and will determine the future costs and network access for Legacy patients insured with Regence BlueCross BlueShield of Oregon.
The fate of this contract negotiation rests on the ability of both parties to find common ground before it’s too late. With $172 million lost in the last fiscal year alone, Legacy’s financial situation is precarious, but it is not alone. Many healthcare providers across the country have been struggling due to the pandemic and its impact on patient care and revenue streams. As these negotiations continue, it remains to be seen how both parties will navigate these challenges and what impact it will have on patients’ healthcare access and affordability moving forward.