Healthcare Costs on the Line: Legacy Health’s Tense Negotiations with Regence BlueCross BlueShield of Oregon Could Result in Significant Price Increases for 200,000 Clients

Legacy Health and Regence BlueCross fail to reach agreement on contract renewal as deadline approaches

Legacy Health is warning 200,000 of its clients that their healthcare costs could significantly rise if contract negotiations with Regence BlueCross BlueShield of Oregon fail. The potential price increase hinges on whether Legacy can come to an agreement with Regence by the end of Sunday.

Patients insured with Regence are being advised to contact their insurance company to inquire about the differences between in-network and out-of-network costs, as they may find their providers out of network if a deal is not reached. Contract negotiations between healthcare providers and insurers often involve some degree of brinkmanship, and both sides are exchanging tough rhetoric in press releases.

Legacy reported a $172 million loss in its last fiscal year, while Regence recorded 4.8% profits on $2.83 billion in revenue. The current standoff between the two companies involves some heated exchanges regarding contract terms, with Legacy suggesting that Regence has the financial means to compromise and citing recent profitable years compared to Legacy’s financial losses following the COVID-19 pandemic. If an agreement is not reached before the contract expiration date, uncertainty looms for Legacy patients who may face higher prices for their care.

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