PORTLAND, Ore. — Providence Health & Services and Regence Blue Cross Blue Shield of Oregon reach an agreement to keep the hospital system in the insurer's network and enroll in Regence insurance. A facility to ensure that Oregonians who live in Providence do not face out-of-network charges when visiting Providence.
The contract between the companies expired late last year, but renewal negotiations have stalled for weeks over reimbursement rates, with Providence arguing that higher reimbursement rates are needed to keep up with rising labor and supply costs. , the Regents argued that Providence's proposal would be as follows: It's too expensive and increases the customer's insurance premiums.
Monday was the deadline for the two companies to reach a new agreement or split, and the companies announced in news releases Monday morning that they had worked hard over the weekend to reach an agreement. Providence said the new contract is still being finalized, but the contract will remain in the Regence network while details are finalized to ensure coverage for Regence customers at Providence facilities is not interrupted.
“We are grateful that Regence recognizes the need to address rising costs and compensate caregivers, and to provide world-class health care services to our patients and communities,” Providence said in a statement. We look forward to our continued partnership and collaboration with Regence.” statement.
“We recognize that these negotiations have created uncertainty for some Regence members and are working with Providence leadership to achieve more sustainable reimbursement rates for our members and customers,” Regence said in a statement. We thank them for their patience as we worked together.”
BlueCross BlueShield is a brand name shared by an association of individual health insurance companies across the country. The conflict with Providence was specific to the Regence Blue Cross Blue Shield of Oregon. Approximately 260,000 Oregonians are insured at Providence hospitals through Regence.
