A letter to our community

Legacy Health’s contract with Regence comes to an end

April 1, 2026

By Merrin Permut, Vice President & Chief Population Health Officer 

Over the past few days, we continued to try and negotiate a fair and reasonable reimbursement increase with Regence, but unfortunately, we provided a proposal to Regence and they did not respond with a new offer, which has stalled negotiations. We remain committed to working towards resolution and hope Regence will continue to engage.

We began this process months ago, informing Regence we would seek a higher reimbursement rate – one that reflects the value and actual costs of care we provide. We stayed at the negotiating table and provided Regence with information on the financial challenges we were facing and asked for fair and reasonable reimbursement. We know how valuable your relationships are with our providers and how important it is to have access to high-quality care close to home, and we hoped that Regence would understand that as well.

Regence claimed our request was unrealistic, but we know that’s a false narrative. Our need for a higher reimbursement rate is steeped in a hard reality. From 2021 to 2025, Legacy’s operating expenses — especially labor, supplies and regulatory costs — have risen 47%. Despite making operational improvements and efficiencies over the past three years, including closures and reductions, these measures haven't matched the pace of rising expenses. Meanwhile, Regence continues to pay Legacy less than other major health systems in the region.

Unfortunately, this means that as of April 1, Legacy hospital services and some clinics may remain in-network for Regence members for an additional 12 months, while other services will be out of network. Being out-of-network means that you may have to pay more money out of pocket for services at Legacy. See the Regence contract website for a list of clinics by network status.

The contract termination impacts all Regence members, including those who have insurance through another BlueCross BlueShield insurer (such as Premera) that uses the Regence network for access to Legacy services. This termination does not include Silverton area facilities and clinics, which are under a separate agreement with Regence.

If you think you are impacted by this news, we urge you to call the phone number on the back of your member ID insurance card to understand your options. Patients may be eligible for a continuity of care program that allows them to continue seeing their Legacy provider at in-network rates for treatment for a limited time. We do not have the authority to make decisions about your insurance coverage. Your insurance company is responsible for deciding your coverage and determining if you quality for continuity of care.  You can also work with your insurance company to find another in-network provider if needed. We also have tools and resources to help guide you at LegacyHealth.org/RegenceContract.

The best thing you can do to understand your insurance coverage and available options for providers, hospitals and clinics is to call your insurance company immediately. See the Regence contract website for a list of clinics by network status.   

While we remain disappointed that we did not come to agreement ahead of the April 1 deadline, I want to assure you we are committed to remaining at the table. We will continue negotiating with Regence in hopes of coming to agreement so we can continue to support the health of our people, our patients and our communities. 
 

Merrin Permut, MHA
Vice President and Chief Population Health Officer
Legacy Health