BANGOR, Maine
Friday marks the deadline for Northern Light Health and Anthem Blue Cross Blue Shield to finalize a new contract.
Anthem released a statement expressing frustration, saying, “Despite our best efforts, including doubling the proposed payment rate increase, we are extremely disappointed that Northern Light Health’s latest request is a 24.8% increase in hospital rates over three years.”
While Anthem plans to keep negotiating with Northern Light, the latter is hesitant to extend the contract past Friday.
Northern Light Health responded, stating, “We have been negotiating throughout the day and are confident we can sign an agreement before the deadline. It’s disappointing that Anthem has chosen to share misleading information with the media during the negotiations,” said Suzanne Spruce, senior vice president and chief communications officer.
If no new contract or extension is reached by Friday, Northern Light’s non-hospital facilities, physicians, and specialists will exit the Anthem network on Saturday.
Originally, NLH and Anthem had missed their September deadline for a new agreement but decided to extend the current contract through Friday.
About 30,000 residents in Maine are insured through Anthem.
In a reiteration of their position, Anthem stated, “We are disappointed because, despite our best efforts—including doubling proposed payment rate increases—Northern Light Health wants a 24.8% rise in hospital rates over three years. It’s not something the workers and employers in Maine can bear. We’re committed to negotiating an agreement to keep Northern Light Health in our network at affordable prices for Mainers.”
They added that if Northern Light Health does not agree to a new contract or an extension today, their non-hospital facilities, physicians, and specialists would leave the network tomorrow, November 1, for employer-sponsored and private plan members, while Medicare members would be affected by December 31. However, the hospital will remain within the network until the end of the year for all members.
While both parties have agreed to pay increases for Northern Light Health’s physicians and staff, Northern Light has indicated it is reluctant to extend the existing agreement beyond today. An extension could help avoid care interruptions for members and allow hospitals more time to negotiate prices.
In a final note, Northern Light Health reiterated its confidence in reaching an agreement before the deadline, expressing disappointment in Anthem’s decision to share misleading information.
