Legacy Health Faces Possible Contract Termination with Regence BlueCross BlueShield, Leaving 200,000 Patients in the Dark

Legacy Health is warning 200,000 of its clients that their healthcare costs could increase significantly if contract negotiations with Regence BlueCross BlueShield of Oregon fail. The potential price increase hinges on whether Legacy can come to an agreement with Regence by the end of Sunday. If a deal is not reached, patients insured with Regence could find their providers out of network, resulting in higher costs for their care.

Patients with appointments after March 31 were advised to contact their insurance company to inquire about the differences between in-network and out-of-network costs. Merrin Permut, Legacy’s chief population health officer, warned patients of the looming possibility of contract termination starting April 1.

Contract negotiations between healthcare providers and insurers often involve some degree of brinkmanship. Similar negotiations occurred earlier this year between Providence Health & Services and Regence, resulting in a new agreement being reached on the final day of the contract. In the current standoff between Legacy and Regence, both sides are exchanging tough rhetoric in press releases.

Regence stated that they offered Legacy a competitive contract on March 8, which has yet to be accepted or rejected. Legacy countered by suggesting that Regence has the financial means to compromise on the contract terms, citing the insurance company’s profitable recent years compared to Legacy’s financial losses following the COVID-19 pandemic.

Legacy reported a $172 million loss in its last fiscal year, while Regence recorded 4.8% profits on $2.83 billion in revenue