PORTLAND, Ore. — Time is running out on contract renewal negotiations between a prominent Portland hospital group and a major Oregon insurance company, with the health care fate of more than 260,000 Oregonians at stake.
Providence Health & Services is asking insurer Regence Blue Cross Blue Shield to increase reimbursement rates to keep up with rising medical costs and employee wages. Providence said drug prices and supply prices rose 19% from 2020 to 2022 and are still rising, calling the company “significant financial losses since the beginning of the COVID-19 pandemic.” also pointed out.
in news release Two weeks ago, Regence claimed Providence was seeking “significant double-digit price increases” that would cost more than $144 million in just one year, resulting in higher premiums and copays. did. For example, the cost of a C-section birth will increase by about $5,500.
If the two companies do not reach an agreement by the end of the current agreement, which expires on January 15, Providence will leave Regence's network. That means patients with Regence insurance will have to start paying out-of-network rates at Providence hospitals. Providence will also exit the Regence Medicare Advantage Network on Feb. 15 unless an agreement is reached.
“I'm worried about everyone in this area. There's a lot of people who rely on Providence for their health care,” said Kendall Stowell, who works near Providence Portland Medical Center.
Those people include Mary Grevis and her children, who rely on the Providence system for specialized care. Grevis said her children have emotional and intellectual disabilities, but Providence offers programs that have been a “savior” for her family. She said her family would be seriously affected if the two companies did not reach an agreement.
“You might have to go out of town to get those programs, or you might have to pay more out of pocket than you currently do,” she says. .
KGW contacted Regence twice on Monday and will update this article if we hear back from the company. Providence said in a statement that it expects to reach an agreement within the next four weeks without disrupting patient care. Providence urged patients covered by Regence to contact their insurance company with any questions.
“While we are working tirelessly to combat rising costs, we cannot do it all alone…If we do not take these costs into account, we will not be able to support the dedicated individuals who work in our clinics and hospitals. It affects your ability to pay appropriately,” Providence said.
This summer, Providence nurses went on strike and ultimately secured a historic pay raise, which the hospital said also added to financial pressures.
“I'm not surprised at all when it comes to medicine and health care, given how medicine works these days and how things have gone in the last few years,” Grevis said.
“Their goal should be to serve more people, as many people as possible,” Stowell added.
BlueCross BlueShield is a brand name shared by an association of individual health insurance companies across the country. The conflict with Providence is specific to Regence Blue Cross Blue Shield of Oregon.
