MultiCare Yakima Memorial Hospital and clinics are now out of network for patients covered by Regence insurance plans after the two companies failed to reach a contract agreement by their May 10 deadline.
The situation affects people on employer-sponsored health insurance plans, but not Regence Medicare members, the insurance company said in a statement Monday.
Over the last year, Regence and MultiCare have been trying to reach an agreement on a new contract. Disputes over reimbursement levels, however, have left the two entities at a standstill.
“Regence is one of our largest commercial insurers, yet its reimbursement rates for hospital and clinician services are among the lowest and have not kept pace with rising costs driven by inflation, workforce needs, and investments necessary to preserve services and ensure long-term stability for the communities we serve,” MultiCare Media Relations Manager Scott Thompson said in an email to the Yakima Herald-Republic.
Thompson added that the hospital system is “disappointed that Regence has not offered rates that reflect the financial realities facing health systems and health care providers today.”
Thompson said MultiCare cares for about 10,000 Regence patients in Yakima. 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.
Regence says it engaged in good-faith negotiations with MultiCare leadership and offered rate increases that it believes “more than cover the cost of care for Regence patients.”
“This is not the outcome we had worked toward,” Regence said in a news release. “Our goal is always to provide our members access to high-quality healthcare at an affordable price. We are disappointed in MultiCare’s response; however, we need to stand up for affordability for our employer group customers and members.”
According to Regence’s news release, MultiCare locations in Thurston and Grays Harbor counties also fell out of network for commercial plan members on Sunday. Both companies have said they remain committed to reaching an agreement in the future.
MultiCare also is negotiating with Premera Blue Cross, with a termination date of May 31, unless an agreement is reached.
What patients should know
Although many Regence members are losing their in-network status with MultiCare, the insurance company is offering a 90-day continuity of care period through Aug. 9 for some patients to complete care without interruption. Examples of eligibility include:
Seeing a provider for a serious or complex condition, including certain chronic conditions Undergoing a course of institutional or inpatient care from the provider Being scheduled for nonelective surgery from the provider Being pregnant and seeing the provider for pregnancy-related care Being determined to be terminally ill
Members can call the number on the back of their member ID card to confirm eligibility.
Under Washington state law, Regence plan members also may be able to see their primary care provider at the in-network price for up to 60 days after receiving notification about the contract ending.
The insurance company also has a list of alternative, in-network providers listed on its website, including Astria Toppenish and Sunnyside hospitals, Yakima Valley Farm Workers Clinic, Ausink Family Medicine and Selah Family Medicine.