Mercy warns of dropping Anthem, potentially affecting in-network coverage for patients
Mercy, one of the largest health systems in
Chesterfield-based Mercy, which operates dozens of hospitals and hundreds of other outpatient locations in the region, has announced it intends to move out of the insurer's network in January if
"No health insurer should make health care harder, and we have just continued to see more and more administrative burdens placed on our patients, placed on our caregiver providers," said
Thompson said the insurer's refusal to cover certain procedures and requiring prior authorizations, in which a provider must get an insurer's go-ahead before prescribing a drug or conducting a procedure, "don't add value to the overall outcomes of patient care."
"I believe this is about the rate increases," she said. "This is about them asking for [a reimbursement rate] five times higher than inflation, and us trying to strike the balance of coming to terms on an increase while maintaining affordability and access to care for our members."
Mercy officials said the claim that they want to charge five times the rate of inflation is false.
Health systems regularly negotiate how much insurance companies reimburse hospitals for the care they provide to those insured by the company. Such negotiations are private, and details are rarely made public.
Hospitals with lots of patients or with many locations can leverage their size and reach to achieve higher reimbursement rates. Insurers can leverage their large patient networks to pay less expensive reimbursement rates to health systems.
Mercy officials say dropping the insurer could affect 500,000 patients in the state.
Jovicic said 90,000 members in the
Although threats of terminating contracts can result in both parties publicly trading barbs and causing patients to worry about their coverage, it's rare that a contract between such large companies is dropped permanently, said
"I think the likelihood that they will never again reach a deal is close to zero," he said. "This is the way negotiations sometimes happen. It gets ugly and lots of bad things are sad about either side. At the end of the day there's too much on the table to walk away from."
If a deal is not reached,
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