Jan. 4, 2024, 7 p.m.
PORTLAND, Ore., Jan. 4, 2024 – With time running out for patients and communities across Oregon, Providence today renewed its call for Regence, one of Oregon’s largest health insurers, to step up and negotiate fair and equitable provider reimbursement rates.
Regence has not provided a counterproposal to Providence since Nov. 8, 2023, when Providence offered its latest formal proposal. Since that time, Providence has made several attempts to come to agreement before the contract termination deadline.
Regence’s failure to compromise means that more than 260,000 Oregonians may be out of network at Providence hospitals and clinics after its commercial contract expires on Jan. 15, 2024, and its Medicare Advantage contract expires on Feb. 15, 2024.
“It’s just not responsible to create so much uncertainty for our patients who are Regence members,” said Melissa Damm, chief financial officer for Providence’s Central Division. “Instead of partnering and acknowledging changes in the health care system since the COVID-19 pandemic, Regence is unwilling to agree to increases comparable to those agreed to by other major health insurers with whom we partner.”
Providence, like other health systems throughout the country, has reported significant operating losses as a result of inflation and labor costs outpacing revenue. In Oregon, Providence lost an unprecedented $97 million in operations in 2022. While Providence is working every day to combat the rising costs of care, the organization cannot do it alone. Insurance companies, like Regence, need to be part of the solution – working with health systems to keep local care sustainable for their members.
“We hope Regence will do the right thing for its members and for communities across Oregon and engage with us to avoid any disruption to their members’ ability to receive care at Providence,” said Damm.
Patients are encouraged to contact Regence directly with questions about their insurance and to urge Regence to work toward a solution for their members at 1-888-675-6570.
As always, Providence has a team of financial counselors available to help those who are uninsured, underinsured or otherwise unable to pay for their health care, providing assistance with medical bills, including free or discounted care.
