LCMC Health and UnitedHealthcare have reached a last-minute verbal agreement that will keep the hospital system in-network for patients covered by the insurer, avoiding a potential disruption in care for tens of thousands of Louisiana residents.
In a statement released late Friday, LCMC said it was “pleased to share that we have reached a verbal agreement with UnitedHealthcare that maintains our in-network status. As a result, your access to the LCMC Health facilities and providers you know and trust will not be disrupted. We have extended our contract to ensure you may continue seeking care at LCMC Health as you normally would.”
The deal came just hours before a midnight deadline that could have made LCMC hospitals out-of-network for UnitedHealthcare’s commercial members, including those with employer-sponsored and individual health plans. Patients enrolled in the insurer’s Medicare Advantage or Medicaid plans were never at risk of losing coverage.
In a statement sent Friday afternoon before the verbal agreement was reached, the UnitedHealthcare said they “remain actively engaged in discussions with LCMC. It remains our goal to reach an agreement that is affordable for the people and employers we serve. We will remain at the negotiating table as long as it takes to renew our relationship.”
In letters and a website dedicated to the negotiation, UnitedHealthcare had warned members that without a new deal, they would face significantly higher out-of-pocket costs at LCMC hospitals, which include University Medical Center, Touro Infirmary, East Jefferson General Hospital, West Jefferson Medical Center, Lakeside Hospital, Lakeview Hospital, New Orleans East Hospital and Manning Family Children’s Hospital. While emergency care would still be covered at in-network rates under federal law, other hospital services could cost patients thousands of dollars more.
LCMC, which expanded its footprint after acquiring three former HCA hospitals in 2023, now commands a greater share of the New Orleans health care market and increased leverage in negotiations. UnitedHealthcare, Louisiana’s second-largest private insurer behind Blue Cross Blue Shield, covers about 20% of the state’s commercially insured residents.
Editor’s Note: This story has been updated with new information.