Providence facilities won’t renew contract with Premera insurance for 2017

Providence Health & Services officials announced Wednesday they will not renew a commercial health insurance contract with Premera Blue Cross for 2017, potentially affecting more than 500,000 people in Washington.

The decision affects patients who receive Premera coverage for care at Providence, Swedish Medical Center and Kadlec Regional Medical Center sites in Washington, as well as affiliated doctors and clinics. Starting Jan. 1, those providers will be out of network for consumers who have Premera insurance, which usually means higher out-of-pocket costs to be seen at those facilities. Until then, care will continue as usual.

A new contract remains possible, officials said, with talks continuing.

Providence officials said Wednesday the decision followed unsuccessful contract negotiations. Talks began in 2015, when the two parties reached a compromise agreement for 2016. But they were unable to come to terms on a 2017 contract, said Colleen Wadden, a Providence spokeswoman.

In the Spokane area, about 9,000 Providence patients with Premera insurance will be affected by the decision, Wadden said. When factoring in providers that use Providence facilities, the number will be even greater, she said.

Local Providence facilities include Sacred Heart Medical Center and Children’s Hospital, Holy Family Hospital, St. Joseph Medical Center in Chewelah and Mount Carmel Hospital in Colville.

Medicare patients will not be affected.

Areas of dispute included reimbursement rates and incentive programs for meeting state and federal goals related to “advancing high quality, accessible health care,” according to a Providence news release.

In a statement, Premera officials said that Providence “abruptly terminated” the contract and that all other large providers in Washington have worked with the insurer.

“Specifically, these major providers have committed to more aggressively control costs, improve the quality of care with performance-based payments and enhance the patient experience,” said the statement from Steve Kipp, Premera’s vice president of corporate communications.

Premera officials urged Providence to return to negotiations and “stop putting the customer in the middle.”

Staff writer Becky Kramer contributed to this report.