Mercy, Anthem reach coverage deal, avoid dropping thousands from network
Chesterfield-based health system Mercy will cover
Under the new contract,
Health systems and insurers regularly negotiate contracts that set the amount of money insurers pay hospitals and other providers for surgeries, checkups and other services. The details of such negotiations are usually private, and the two companies did not disclose more information about the contract.
Representatives from
Mercy officials said then that dropping
Insurance industry analysts say health systems with large patient pools or with many locations can leverage that size to negotiate for higher reimbursement rates. Similarly, large insurers can leverage their huge patient networks to pay less expensive reimbursements to health systems.
As health systems have grown and mergers among hospital companies have become more common, hospitals have more leverage to negotiate rates with insurers, policy analysts say.
Many of
Companies often enroll employees in benefits based on a calendar year, with new plans starting in January, she said.
"Decisions need to be made by late summer and early fall, and this dispute kicked off in September," Pickering said. "It was just too late to make any changes ….Employers have been worried about this and they are definitely breathing a sigh of relief."
Pickering said the public had been more aware of the negotiations between the companies than in the past because Mercy had sent out a notice to patients earlier in the year warning them of the potential fallout with
"Patients and employees got engaged in a way I have not seen before," she said. "A new element is the voice of the patient and the voice of the employee."
Patients have been worried and unsure if they'd have coverage in the new year, said
"There really was a lot of frustration and confusion, and all for naught at this point," he said. "People had to make decisions and really kind of think about how important the doctors were and how much they were willing to, you know, bend on insurance."
Bottani said he had seen many patients, particularly ones who bought coverage through the federal health insurance marketplace, drop
"I think the patients are probably the ones that lost the most here," he said.
This story has been updated to include comments from representatives from companies that work with
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