Insurance Fight Puts Health Care For 260,000 Oregonians At Risk
Portland, Ore. — Regence BlueCross BlueShield of Oregon and Providence Health & Systems, key players in Oregon’s healthcare for over 80 years, are at odds over the fees Providence charges the insurer for healthcare services. With a contract expiration on Jan. 15, there’s a risk that Providence’s hospitals may no longer accept Regence insurance, affecting up to 260,000 patients.
The dispute centers on Providence seeking higher payments to cope with inflation and offset the losses incurred from Medicare and Medicaid patients. Providence contends that a 19% increase in healthcare costs from 2020 to 2022 necessitates these adjustments. In contrast, Regence argues that Providence’s proposed rate hikes are impractical, citing a potential $144 million annual cost.
Despite the looming threat, both parties acknowledge the critical interdependence between insurer and health provider to ensure medical care accessibility and payment. They express intent to continue negotiations, but the outcome remains uncertain as the January deadline approaches.
