PORTLAND, Ore. — Legacy Health’s contract with Regence has ended, as the two have been unable to reach an agreement over reimbursement rates for health care.
The president of Regence BlueCross, BlueShield of Oregon, Michael Cole, said in a post on the health insurer’s website Wednesday that both companies couldn’t agree on rates that “effectively address and contain the rising cost of care.”
Cole goes on to say that as of Wednesday, Legacy Health will now fall out of network for Regence Health insurance members.
However, there may be “some exceptions,” as Legacy notes that hospital services and some clinics might remain in-network for another 12 months.
According to a spokesperson for Regence, they told KATU, “Approximately 29,000 Regence members who utilize Legacy Health services were notified of the potential network change.”
The move comes after several weeks of negotiations and is expected to have a large impact on many people getting treatment at Legacy Health.
In a statement to KATU News, a spokesperson for Legacy Health said:
As a local, community-based, nonprofit health system, Legacy Health has experienced significant increases in operating costs since the pandemic. We rely on our payer partners, including Regence, to appropriately share in those rising costs so we can continue delivering high-quality care.
We provided a proposal to Regence, and they did not respond with a new offer, which has stalled negotiations. As a result, Regence members may be considered out of network for Legacy Health services beginning April 1. We remain committed to working toward a resolution and hope Regence will continue to engage.
We are disappointed that our patients may experience interruptions in care despite our efforts to reach an agreement. Legacy has put forward proposals that reflect both the rising cost of care and the value we deliver, and we will continue negotiating. However, we cannot accept reimbursement rates that do not support the cost of providing high-quality care.
Additional details, including an overview of the negotiations, the factors driving increased costs and what this may mean for patients are outlined in our community letter available at LegacyHealth.org/RegenceContract.
Regence members should call the phone number on the back of their health insurance card to understand their options. A list of clinics and their current network status is available at LegacyHealth.org/RegenceContract.
Our priority remains reaching an agreement that ensures continued access to care so that we can continue advancing our mission of good health for the communities we serve.
Statement from Regence BlueCross BlueShield of Oregon:
Despite several weeks of good-faith negotiations, Regence and Legacy Health have been unable to reach agreement on reimbursement rates that effectively address and contain the rising cost of care. As of April 1, 2026, Legacy Health is out of network for Regence members in Clark County, Washington and the Portland metro area, with some important exceptions. Legacy Health’s initial demands for a 28.8% rate increase would have driven insurance premiums significantly higher—far beyond what inflation, wages or actual health care costs justify. As a local, not-for-profit health plan, Regence works for members, not shareholders. Ninety cents of every premium dollar goes directly to medical care and when hospital costs rise, our members and employer customers pay the price. While we can’t control what providers charge, we can—and must—negotiate firmly on behalf of the people and businesses we serve.
We understand the concern and inconvenience this causes our members. We want to be clear that we continue to be fully engaged in negotiations and remain committed to active discussions with Legacy leadership. We’ve set up a dedicated customer service team ready to assist with any questions or concerns and members should call the number on the back of their member ID card if they need help with appointments or access to care. See blog for additional information: Legacy Health negotiations | Regence