Providence Health Services announced it will not renew its commercial contracts in Washington for 2017 with Premera Blue Cross.
The decision announced Wednesday will not affect Premera patients using the health services facilities and physicians for the remainder of the year, but starting in 2017, Providence, Swedish, PacMed and Kadlec providers will no longer accept Premera commercial health insurance, stated an email from Providence.
Medicare Advantage contracts will continue.
“We know that not participating in Premera products will be disruptive for some patients and clinicians and we don’t take this decision lightly,” Colleen Wadden, senior director of reputation management at Providence Health and Services, said in an email. “Our goal as an integrated delivery system is to always make the best operational decisions so we can continue providing quality health care services throughout Washington and the terms that Premera has presented us to date do not allow us to do that.”
During contract negotiations in 2015, Providence Health Services reached a short term agreement for 2016, with a commitment to execute a new agreement for 2017.
“Unfortunately, over the past year we’ve been unable to reach an agreement with Premera on the commercial contract for 2017,” Wadden said.
Issues needing to be addressed if a new contract is initiated with Premera include rates, standard contracting terms across the system, and the development of a quality incentive program that aligns with Providence’s work with the goals established at the state and federal level for advancing high quality, accessible health care, stated the email.
“We are disappointed we were unable to come to terms with Premera, but this does not mean it isn’t possible for Providence to develop a new contract with Premera in the future,” Wadden said. “We are communicating about this decision now to ensure our patients can make the best choice about their health care plans for 2017.”
Additional information will be updated on Providence’s website as it becomes available at www.keepprovidence.org.
