Providence Alaska reaches agreement with Premera on in-network insurance coverage [Anchorage Daily News, Alaska]

Dec. 13—Alaska's largest health insurer and three health care provider groups with the state's largest hospital announced Wednesday that they had reached an agreement to continue providing coverage in the new year.

Negotiations stalled after representatives from Providence Alaska said health care costs had soared in recent years and that reimbursements from health insurance companies had not kept pace. Representatives from Premera Blue Cross Blue Shield said last week that they felt their reimbursement offers had been fair.

The terms of the new contracts between Premera and the three Providence Alaska medical groups are confidential.

In November, Providence Alaska sent contract termination notices to Premera. Contracts with three medical groups — Providence Medical Group Alaska, Providence Behavioral Medicine Group and Providence Imaging Center — had been slated to sunset at the end of the year.

Premera sent notices to roughly 150,000 Alaska customers in late November warning that some providers were set to go out of network in 2024. Premera patients using those providers were expected to face higher prices.

Roughly 10 health care providers across Premera's network in Alaska and Washington state have sent termination notices in recent years during contract negotiations. All the negotiations were resolved before deadlines were met.

Representatives from Premera and Providence Alaska released a joint statement Wednesday morning welcoming the new contracts and the continuation of service.

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