The contract negotiations between Legacy Health and Regence BlueCross BlueShield of Oregon are ongoing, with a potential increase in healthcare costs looming for patients if an agreement is not reached. Legacy Health has issued a warning to 200,000 customers that their prices may rise significantly in just a few days if a new contract is not finalized.
If the current contract expires on Sunday without a new agreement in place, patients insured with Regence could find that their providers are out of network, leading to higher costs. Legacy’s chief population health officer, Merrin Permut, has advised patients with scheduled appointments after March 31 to contact their insurance company for information on in-network vs. out-of-network costs.
Both sides seem to be taking a tough stance in the negotiations, with Regence claiming they offered Legacy a competitive contract that has not yet been accepted or rejected, while Legacy points out that Regence has been profitable and stockpiling cash while healthcare providers like Legacy have been struggling due to the COVID-19 pandemic.
The fate of this contract negotiation will determine the future costs and network access for Legacy patients insured with Regence BlueCross BlueShield of Oregon. In recent years, Regence has reported a profit margin of 4.8%, while Legacy Health reported a loss of $172 million in the last fiscal year. The financial disparity between the two companies highlights the complexities involved in negotiating contracts between insurance providers and healthcare providers during these challenging economic times.