This article was published in The Oregonian/OregonLive on March 28, 2024 and updated March 29, 2024
Legacy Health, Regence BlueCross have no deal with only days left on contract
By Jeff Manning | The Oregonian/OregonLive
Mar 28, 2024
Legacy Health is again warning 200,000 of its customers that their health care could jump significantly in price in a matter of days.
It all depends on whether Legacy can reach an 11th-hour agreement with Regence BlueCross BlueShield of Oregon on a new contract. If the two sides don’t budge, the contract will expire at the end of Sunday.
At that point, patients of Legacy hospitals, clinics and doctors who are insured with Regence could find that their providers are out of network and therefore much more expensive.
“While we continue to try and reach resolution, we need to prepare you for the very real possibility of contract termination, starting April 1,” Merrin Permut, Legacy’s chief population health officer, wrote in a notice to patients this week.
Patients with a scheduled appointment after March 31 should contact their insurance company for questions about in-network vs. out-of-network costs, Legacy advised.
A little brinkmanship is not all that unusual in these sort of contract talks. In January, it was Providence Health & Services sparring with Regence over seemingly stalled negotiations. They managed to cut a new deal on Jan. 15, the last day of the contract.
A little brinkmanship is not all that unusual in these sort of contract talks. In January, it was Providence Health & Services sparring with Regence over seemingly stalled negotiations. They managed to cut a new deal on Jan. 15, the last day of the contract.
In the current standoff, the two sides are talking tough in dueling press releases.
Regence said that on March 8 it offered Legacy “a market competitive contract that they have not yet accepted or rejected. Instead, Legacy’s leadership has chosen to focus their efforts on spinning a false narrative about our willingness to continue negotiations.”
Legacy, meanwhile, claimed Regence can afford to give a bit on its contract as it has reaped a fortune in recent years.
“Another thing Regence didn’t share with you: The insurance company has been collecting big profits and stockpiling cash in their reserves for years – all while frontline caregivers like Legacy have been losing money in the aftermath of the COVID-19 pandemic,” Legacy said.
Legacy reported a $172 million loss in its last fiscal year. Regence posted 4.8% profits on $2.83 billion in revenue.