Negotiations between Mount Sinai Health System and Anthem Blue Cross Blue Shield failed, resulting in thousands of patients in New York losing in-network care. 

The two parties temporarily extended the deadline Monday for a new contract, but failed to come to an agreement Tuesday night.

About 9,000 Mount Sinai physicians became out-of-network to about 200,000 Anthem patients when they couldn’t reach an agreement on Dec. 31. But, state law mandated no change for patients before March 1.

Mount Sinai wants price hike, Anthem says

Anthem officials said in a statement that both sides reached an agreement and a contract was ready to go. At the last minute, Mount Sinai refused to move forward “unless we agreed to eliminate basic consumer protections that help make sure care is appropriate and patients are not overcharged,” according to the statement.

 “We cannot agree to changes that would drastically increase costs for New Yorkers. We remain willing to reach a responsible agreement and will continue to work with Mt. Sinai to return them to our network. In the meantime, our network includes every other major health system in New York City, and we are focused on helping our members get the care they need during this transition,” Anthem officials wrote.

They previously claimed Mount Sinai executives were demanding price increases of more than 50% over the next three years.

$450 million owed to Mount Sinai

Mount Sinai staff also released a statement in response to the termination.

“Over the past several months, Mount Sinai engaged in repeated, good-faith efforts to reach a responsible agreement that would restore in-network access to our patients. Over the last month, we made meaningful progress. After narrowing economic differences, Anthem refused to commit to contract provisions designed to protect patients from excessive denials, delayed determinations, and prolonged administrative disputes. Mount Sinai cannot accept terms that undermine patient care or destabilize our system,” officials said. 

Executives previously said Anthem owes Mount Sinai more than $450 million for care already provided to its members. 

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