Legacy Health is issuing a warning to 200,000 of its clients that their healthcare costs could rise significantly if contract negotiations with Regence BlueCross BlueShield of Oregon fail. The potential price increase hinges on whether Legacy can come to an agreement with Regence by the end of Sunday. If a deal is not reached, patients insured with Regence could find their providers out of network, resulting in higher costs for their care.
Patients were advised to contact their insurance company to inquire about the differences between in-network and out-of-network costs after Merrin Permut, Legacy’s chief population health officer, warned patients of the looming possibility of contract termination starting April 1.
Contract negotiations between healthcare providers and insurers often involve some degree of brinkmanship. Both sides are exchanging tough rhetoric in press releases as they try to reach an agreement. Regence stated that they offered Legacy a competitive contract on March 8, which has yet to be accepted or rejected.
Legacy countered by suggesting that Regence has the financial means to compromise on the contract terms, citing the insurance company’s profitable recent years compared to Legacy’s financial losses following the COVID-19 pandemic. The uncertainty surrounding these negotiations is causing concern for Legacy patients who may face higher prices if an agreement is not reached before the contract expiration date.
