Contract Termination Between Legacy Health and Regence

PORTLAND, OREGON — Legacy Health’s agreement with Regence has ended after the two entities couldn’t come to terms on reimbursement rates.

Michael Cole, president of Regence Blue Cross, Blue Shield of Oregon, noted that their discussions were ultimately unproductive as they failed to establish rates that would address the escalating costs of healthcare.

As of Wednesday, Legacy Health will officially no longer be included in the network for Regence Health insurance policyholders. Still, there might be some exceptions—certain hospital services and clinics could potentially remain in-network for another 12 months.

This decision follows weeks of negotiations and is poised to significantly affect many individuals receiving care at Legacy Health.

A spokesperson from Legacy Health mentioned that the organization has seen its operating costs soar since the pandemic, emphasizing the necessity of fair cost-sharing with their payment partners, including Regence, in order to maintain quality care.

They indicated that a proposal was submitted to Regence, but the lack of response has stalled negotiations, leading to potential removal of Regence members from Legacy Health Services as of April 1. They expressed a commitment to finding a resolution while awaiting further engagement from Regence.

Despite ongoing efforts, Legacy Health conveyed disappointment over the possibility of treatment interruptions for patients. They believe their proposal reflects the rising costs of healthcare along with the value they offer and plan to persist in negotiations. They highlighted that reimbursement rates that don’t support service delivery are not acceptable.

For more information about the negotiations, contributing factors for cost increases, and implications for patients, refer to the community letter available on their website.

Regence members are encouraged to reach out using the number on their insurance card to understand their options. A list of clinics and their network status is also accessible online.

Legacy Health remains focused on securing agreements that ensure ongoing access to care as they strive to fulfill their mission to promote health within the communities they serve.