MultiCare and Premera Blue Shield negotiating new contract with June 1 deadline

MultiCare, which owns and operates MultiCare Yakima Memorial Hospital and 26 clinics in Yakima County, is working with Premera to negotiate a new contract with what MultiCare officials say would be more equitable terms. The current agreement ends May 31.

"We are looking to establish a new and more equitable agreement that would help ensure our members can continue to have access to quality and local care," said Alex Jackson, chief executive of the MultiCare Inland Northwest Region and Yakima Region.

Jackson said for years, MultiCare's contact with Premera has been a losing one, where the health system has been paid on average 15-18% less for its care compared to other health systems across the state.

A statement published on a Premera blog in early April and updated on May 6 said MultiCare started the negotiation process with a termination notice.

"This was not something Premera pursued," the statement said. "We want them (MultiCare) to stay in-network and our efforts are aimed at that."

Premera said rate increases would affect not just Premera, but the patients and communities it serves.

The statement said members with coverage through Premera Medicare Supplement plan or those on the HMO plan with the Sherwood HMO network would not be affected.

The Premera statement said individuals receiving treatment for a covered service or complex chronic medical condition could continue receiving in-network benefits for up to 90 days after the June 1 deadline, should an agreement not be reached. Premera has sent out letters to clients who qualify for the extended benefits period.

After May 31, Premera members would still be able to receive emergency care at Multicare emergency departments, and emergency care is always covered at the in-network cost.

If an agreement isn't reached, Jackson said clients with Multicare appointments scheduled after June 1 will see increased out-of-pocket costs.

"As we look at this negotiation, we really try to put our patients first, so we want to work with Premera to reach and equitable agreement," Jackson said.

He added MultiCare hospitals and clinics in Yakima County and across the state serve thousands of Premera insurance users, all of whom would be affected.

"We value the role that Premera plays in the state, however, as we look at our Premera rates, they have not been keeping up with the cost of inflation measured through the consumer price index and they have not been keeping up with inflation rates or premium increases," Jackson said. "We must require that our pay partners pay us fairly so we can continue to provide high-quality care."

In the case an agreement does not go through before June 1, Premera urges its clients to visit the Premera website at premera.com and used the Find a Doctor tool to find in-network providers in their area.

Santiago Ochoa's reporting for the Yakima Herald-Republic is possible with support from Report for America and community members through the Yakima Valley Community Fund. For information on republishing, email [email protected].

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