Thousands in Central Mass. could lose insurance coverage Jan. 1.
Point32Health, the second-largest health insurer in
The development impacts 16,000 UMass patients who may have to scramble to find alternative insurance plans to cover the cost of seeing primary care doctors and specialists.
The problem extends to for-profit
Neither Point32Health nor the hospitals disclosed how far apart they are on the numbers. The impasse also affects thousands of patients at
Point32Health and UMass did not agree on a reimbursement rate for low-income patients covered by Tufts Health Direct. The change takes effect at midnight
UMass denied a request to interview Dr.
"We will continue to work collaboratively toward a fair and equitable agreement that enables us to provide the exceptional care that our patients across
It further explained UMass has separate contracts with Point32Health for its Medicare Advantage products (Tufts Medicare Preferred and Harvard Pilgrim Stride) and Tufts Health Direct, a qualified health plan offered through the state's health connector.
UMass said it does not expect to renew Tufts Health Direct and sent letters to enrolled patients to explain other managed care plans that provide access to doctors in the UMass system.
Tenet declined a request to interview
"Unfortunately, Point32Health is not negotiating in good faith and our hospitals believe patients should be informed about potential network disruption so they can make the best health plan enrollment decision for their families during open enrollment."
A "challenging negotiation" is how Point32Health described the landscape because Tenet is demanding significant reimbursement rates over multiple years. They include 30.55% over four years for commercial plans and 26% over four years for qualified health plan members, according to Point32Health. Those double-digit increases exceed the 3.6% health care cost growth benchmark set by the state's
Point32Health also mentioned insurance companies face rising medical costs and that reimbursements are a major factor in those costs. Given those constraints, the insurer called Tenet's demands "not tenable."
Also, Point32Health said Tenet prioritizes its shareholders and executives, noting that Tenet's stock price shot up more than 75% last year while its chief executive officer received more than
"With Steward Health Care finally vanquished from the
While negotiations will continue to reach an agreement before the current contract expires at the end of this year, Point32Health said Tenet "does not seem interested in doing the same."
Some health care watchers believe what is playing out is another example of a dysfunctional health care system.
It's no secret that
Three UMass entities had negative operating margins for the quarter that ended
Tenet's four
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