MultiCare Health System and Regence BlueShield have reached an agreement on compensation costs, meaning the hospital system’s facilities and doctors will once again be considered “in network” for Regence insurance plan members.
Meanwhile, a contract with Premera Blue Cross was extended as negotiations continue.
On Monday morning, MultiCare spokesperson Kevin Maloney announced the healthcare provider reached an agreement with Regence.
“This agreement renews Regence subscribers to remain in-network as patients at MultiCare facilities,” Maloney wrote in an email to the Yakima Herald-Republic. “We are pleased to continue our partnership with Regence and continue to give their patients the high-quality care they expect from MultiCare.”
An agreement also was acknowledged by Regence spokesperson Ashley Bach in an email to the Herald-Republic.
“We have reached a verbal agreement with MultiCare’s leadership and are now formalizing it in writing so we can accurately notify the members and employer groups we serve,” Bach wrote.
The two companies failed to reach a contract agreement by their May 10 deadline, meaning MultiCare facilities in Yakima and two other Washington counties were considered out-of-network for patients covered by Regence employer-sponsored health insurance plans.
Providers who are out-of-network usually cost more than in-network doctors and facilities.
MultiCare officials noted their company cares for about 10,000 Regence patients in Yakima. The Regence-MultiCare impasse did not affect Regence Medicare plan members.
A letter sent to Regence customers last month about the potential contract termination lists 23 Yakima County providers associated with MultiCare, including MultiCare Yakima Memorial Hospital and numerous facilities, including Children’s Village, Orthopedics Northwest, Lakeview, North Star Lodge and Ohana Mammography Center.
Premera deadline extended
Premera Blue Cross and MultiCare Health Systems have extended the deadline to reach an agreement on reimbursement costs, meaning the hospitals, clinics and providers will remain in network for Premera plan members through the end of June.
“Following a direct engagement between our respective CEOs, Premera and MultiCare have reached a verbal agreement to extend our current contract while negotiations continue,” the Washington-based insurer posted Friday afternoon on its website.
“This means that MultiCare will remain in network for members with Premera health plans until at least June 30.”
In April, Premera notified its members that MultiCare issued a contract termination notice with the insurer, effective May 31, unless a new agreement could be reached
The termination notice is for insurance plan members on commercial (employee-sponsored) and individual plans. They do not affect Premera members with Medicare supplement coverage.
On Saturday, MultiCare spokesperson Maloney confirmed that the healthcare provider’s patients with Premera insurance will continue to be in-network for care through June 30.
“Strong contracts are what allow us to serve our communities the way they deserve — with care close to home, skilled clinical teams, and the technology and resources required to deliver safe, high quality care,” Maloney said in an email to the Yakima Herald-Republic. “We hope Premera will join us in finalizing an agreement that protects access to care and puts patients first.”
In its online statement, Premera management called the contract extension “meaningful progress” that demonstrates both sides’ commitment toward reaching a resolution to the reimbursement dispute.
“This is not a final agreement, and there are still real differences to work through,” the Premera statement noted. “But this extension provides more time and space for Premera and MultiCare to continue negotiating and work toward an agreement that fairly compensates our provider partner and ensures our members have access to quality care at a price they can afford.”
The out-of-network designation, which would have taken effect June 1, would apply to all MultiCare facilities across Washington, including MultiCare Yakima Memorial Hospital and associated medical facilities.
Based in Tacoma, MultiCare operates 13 hospitals and more than 300 primary, urgent, pediatric and specialty care locations across Washington, Oregon and Idaho. The not-for-profit health care system acquired Yakima Memorial Hospital in fall 2022.
In April, MultiCare officials told the Herald-Republic that reimbursement levels from insurance companies like Premera must be enough to meet its costs.