Harrison, Regence extend contract into mid-August

July 31--BREMERTON -- Harrison Medical Center and Regence BlueShield agreed to a temporary contract extension late Wednesday as the two sides continue to hammer out a new agreement.

The last-minute deal extends the existing contract between the hospital and insurance company into mid-August, allowing Regence customers to continue receiving treatment from Harrison at "in-network" cost while a new contract is negotiated.

The contract was set to expire at end-of-business Wednesday. The Kitsap Sun was notified of the temporary agreement at 9:30 p.m.

A disagreement over reimbursement rates left Harrison and Regence deadlocked over a contract renewal this summer. Representatives from both sides said they're not giving up on finding common ground.

"It's our hope that the conversations will continue," Regence spokeswoman Jennifer Morgan said.

Morgan said Regence has made several "above market" offers to Harrison in recent months and those offers were rejected. The insurer has an obligation to keep costs low for its customers, she said.

For their part, Harrison representatives have said they need increased reimbursement rates from Regence to keep up with health care costs.

More than 10,000 Harrison patients are covered by Regence plans, which include the Uniform Medical Plan, Federal Employee Plan, Medicare Advantage, TriWest and BridgeSpan.

Without a contract, Harrison would no longer be "in-network" for Regence customers. That means patients would pay higher out-of-pocket costs services at Harrison facilities. The change would include Harrison HealthPartners physicians. Regence members still could be reimbursed for visits to Harrison emergency rooms.

The next closest hospital for many Kitsap residents would be St. Anthony in Gig Harbor. St. Anthony is part of the Franciscan network, which contracts with Regence.

A number of other medical groups in Kitsap, including The Doctors Clinic, are "in-network" for Regence.

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