Insurer, MultiCare extend negotiations deadline over new contract

Debbie Cockrell, The News Tribune (Tacoma, Wash.)News Tribune

Representatives for Tacoma-based MultiCare Health System and Mountlake Terrace-based Premera Blue Cross have announced that insurance-contract talks have been extended.

That means continuing in-network coverage for the insurer’s patients through June as the two sides continue negotiations.

“Your appointments are not being canceled,” MultiCare announced in an online update. “Our hospitals, clinics and care teams will continue caring for patients, and we will continue to negotiate in good faith with Premera until an agreement is reached.”

The News Tribune reported in April that MultiCare and Premera had yet to reach new contract terms following a termination notice from MultiCare sent late last year to the insurer, which would have been effective as of May 31, 2026.

Both entities now say they have agreed to extend the contract expiration date to June 30.

The extension was to “help ensure patients have access to in-network care while we continue to negotiate,” according to MultiCare’s online update.

The health system noted that its “hospitals, clinics and providers across Washington state are still at risk of going out of network for Premera commercial health plans beginning July 1, unless Premera prioritizes patient welfare and the well-being of the communities we both serve.”

The contract termination would affect Premera Blue Cross patients statewide through the MultiCare network in employer-sponsored plans and individual exchange plans. The contracts affected include those covering MultiCare clinics, hospitals and providers, including Yakima Memorial Hospital.

Overlake Medical Center & Clinics of Bellevue are not affected, nor are Premera members with Medicare Supplement coverage.

Premera Blue Cross is one of MultiCare’s largest commercial insurers, “but its reimbursement rates for hospital and clinician services are among the lowest,” the health system told The News Tribune in April.

Premera, in its update, stated, “We welcome this meaningful progress, which demonstrates the commitment of both parties to staying at the negotiating table and reaching a fair resolution without disrupting care for the communities we serve,” but cautioned that “there are still real differences to work through.”

The insurer contends that its payouts already are “at the higher end of the market” and that, “If we agreed to the current proposal, the impact would be significant,” via higher premiums, higher deductibles and out-of-pocket costs and increased costs for employers in the state.

Courtney Wallace, media representative for Premera, told The News Tribune via email, “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.”

Scott Thompson, media representative for MultiCare, told The News Tribune via email, “Strong contracts are what allow us to serve our communities the way they deserve ... . We hope Premera will join us in finalizing an agreement that protects access to care and puts patients first.”

More information is available online at MultiCare’s site and Premera’s online blog.

Previous reporting by The News Tribune contributed to this article.