NEWS RELEASES

Legacy seeks higher reimbursement rate that reflects the value and actual costs of care 

Portland, Ore., August 17, 2026 — Legacy Health recently issued a notice of contract termination with UnitedHealthcare to secure a higher reimbursement rate that reflects the value and actual costs of care. If discussions reach an impasse, Legacy’s 2027 contract with UnitedHealthcare, which applies to all our locations except the Silverton hospital and nearby clinics, will terminate on Sept. 30, 2026.  

Contracts between healthcare providers and insurance companies establish how much insurance companies pay for their members’ care. UnitedHealthcare is our second largest payer, with 66,000 Legacy patients in the Portland and Southwest Washington region receiving care in the past year. Their reimbursements have not kept pace with the real costs of care. 

Since the pandemic, Legacy has experienced significant and sustained increases in operating expenses – most notably related to labor, supplies and regulatory requirements – while UnitedHealthcare continues to generate profits. As the largest private insurer in the U.S., UnitedHealthcare recently reported second quarter 2026 earnings of $3.9 billion, up 86% year over year, according to HealthcareDive.  Legacy is asking for a reasonable increase over the next two years to help narrow the gap between cost of patients care and UnitedHealthcare’s current reimbursement of it.

The notice of termination allows both parties to continue negotiations without the Legacy-UnitedHealthcare contract automatically renewing with the old financial terms. If an agreement is not reached on or before Sept. 30, 2026, Legacy will no longer be in-network for UnitedHealthcare members effective Oct. 1, except for emergency care and for Silverton patients. This means those patients may have to pay more money out of pocket for Legacy services.