Providence and Regence BlueCross seal deal on insurance partnership

Providence Health & Services and Regence BlueCross BlueShield of Oregon have finalized a contract that will keep Providence in network for patients with Regence insurance.

The two Oregon healthcare giants announced an agreement Monday, on the last day of their current contract, after months of negotiations. A failure to reach an agreement could have removed more than 260,000 patients with Regence insurance from the Providence network, according to a statement from the healthcare provider.

During negotiations, Providence argued that it would need to charge higher prices to insurance companies to keep up with rising healthcare costs, while Regence said the price hikes were not realistic. In a December statement, Regence said the price hikes would cost the company $144 million in one year.

“We recognize the uncertainty these negotiations caused for some Regence members and appreciate their patience as we worked with Providence leadership to achieve reimbursement rates that are more sustainable for our members and customers,” Regence said in a statement Monday.

The terms of the agreement are not public. A Providence spokesperson did not provide details of the agreement and did not comment on the $144 million cost increase Regence cited last month.

“We are grateful for Regence’s acknowledgement of our need to meet rising costs and compensate our caregivers, and we look forward to working in continued partnership and collaboration with Regence to serve our patients and communities with world-class health care services,” Providence said in a Monday statement.

About the Author: This report was written for The Oregonian/Oregon Live by Carlos Fuentes.

#employeebenefitsbroker #groupmedicalinsurance

Related Stories

Managing prescription drug costs

Feeling the squeeze of inflation? Copay assistance programs may be able to help cut prescription drug costs.

ACA Reporting Webinar recording now available!

Webinars

Unlock Expertise
with Featured
Insurance Webinars

Dive into the world of insurance through our featured webinars, hosted by the industry experts at Maddock & Associates. Gain valuable insights, stay informed about the latest trends, and expand your knowledge on a range of insurance topics.

Whether you’re an employer, employee, or insurance professional, our webinars provide a platform to deepen your understanding and make informed decisions. Join us and elevate your insurance expertise today.

How We Help

Empowering your
workforce

Maddock & Associates: Puget Sound’s top Group Medical Benefits broker for 50+ years. We find quality Group Medical Insurance, keeping your employees healthy and happy while maximizing benefit value.

Trusted by 500+ businesses in Western Washington, we work with leading insurance carriers and Association Health Plans. Our team delivers unmatched services to groups of any size. Control costs and create the best experience for your employees and their families with us.

Stay connected and follow us

Stay connected and be the first to know about the latest insurance updates, industry insights, and valuable resources by following Maddock & Associates on social media. Join our community of insurance enthusiasts, stay informed, and engage with us for a deeper understanding of insurance solutions.