MultiCare Yakima Memorial Hospital

MultiCare Yakima Memorial Hospital is pictured Tuesday, Jan. 28, 2025, in Yakima, Wash.

Premera Blue Cross and MultiCare Health Systems have extended the deadline to reach an agreement on reimbursement costs, meaning the hospitals, clinics and providers will remain in network for Premera plan members through the end of June.

鈥淔ollowing a direct engagement between our respective CEOs, Premera and MultiCare have reached a verbal agreement to extend our current contract while negotiations continue,鈥 the Washington-based insurer posted Friday afternoon on its .

鈥淭his means that MultiCare will remain in network for members with Premera health plans until at least June 30.鈥

In April, Premera notified its members both online and via a mailed letter that MultiCare issued a contract termination notice with the insurer, effective May 31, unless a new agreement is reached between the two companies.

The termination notice is for insurance plan members on commercial (employee-sponsored) and individual plans. They do not affect Premera members with Medicare supplement coverage.

On Saturday, MultiCare spokesperson Kevin Maloney confirmed that the health care provider's patients with Premera insurance will continue to be in-network for care through June 30.

"Strong contracts are what allow us to serve our communities the way they deserve 鈥 with care close to home, skilled clinical teams, and the technology and resources required to deliver safe, high鈥憅uality care," Maloney said in an email to the 黑料福利社. "We hope Premera will join us in finalizing an agreement that protects access to care and puts patients first."

In its online statement, Premera management called the contract extension 鈥渕eaningful progress鈥 that demonstrates both sides鈥 commitment toward reaching a resolution to the reimbursement dispute.

鈥淭his is not a final agreement, and there are still real differences to work through,鈥 the Premera statement noted. 鈥淏ut this extension provides more time and space for Premera and MultiCare to continue negotiating and work toward an agreement that fairly compensates our provider partner and ensures our members have access to quality care at a price they can afford.鈥

The out-of-network designation, which would have taken effect June 1, would apply to all MultiCare facilities across Washington, including MultiCare Yakima Memorial Hospital and associated medical facilities.

Based in Tacoma, MultiCare operates 13 hospitals and more than 300 primary, urgent, pediatric and specialty care locations across Washington, Oregon and Idaho. The not-for-profit health care system acquired Yakima Memorial Hospital in fall 2022.

In April, MultiCare officials told the Herald-Republic that reimbursement levels from insurance companies like Premera must be enough to meet its costs.

Officials said that while Premera is one the largest commercial insurers for its patients, its reimbursement rates have not kept pace with the hospital group鈥檚 rising costs driven by inflation, workforce needs and the investments necessary to preserve MultiCare鈥檚 services and long-term stability.

A similar contract dispute occurred two years ago, as Premera Blue Cross members were notified in May 2024 of the company鈥檚 negotiations with MultiCare. The two companies reached an agreement before their contract lapsed.

MultiCare also remains in negotiations with Regence Blue Shield over reimbursement issues. The two companies failed to reach a contract agreement by their May 10 deadline, meaning MultiCare facilities in Yakima and two other Washington counties are now out-of-network for patients covered by Regence employer-sponsored health insurance plans.

The Regence-MultiCare impasse does not affect Regence Medicare plan members.

MultiCare officials noted their company cares for about 10,000 Regence patients in Yakima.

A letter sent to Regence customers last month about the potential contract termination lists 23 Yakima County providers associated with MultiCare, including MultiCare Yakima Memorial Hospital and numerous facilities, including Children鈥檚 Village, Orthopedics Northwest, Lakeview, North Star Lodge and Ohana Mammography Center.

Contact Joel Donofrio at jdonofrio@yakimaherald.com.

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