Providence and Regence strike last-minute deal for health insurance coverage
PORTLAND, Ore. (KOIN) — People with Regence health insurance in Oregon will now be covered at Providence hospitals as the two companies have reached an agreement over the weekend.
The deal means Providence patients with Regence health insurance won’t have to pay out-of-network rates or find another provider. The deal came at the last minute as the previous commercial contract Providence had with Regence was set to expire Monday and would have potentially rendered “more than 260,000 Oregonians” out of network, Providence said in a release last week.
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“We are pleased to announce that Providence and Regence have worked throughout the weekend and have reached an agreement for a new contract,” said Gary Walker, Providence’s executive director of communications, in an email Monday. “As we finalize our work on that new contract, Providence has rescinded its contract termination. This means that all Providence patients with Regence health insurance will continue to have in-network access to care at Providence facilities and clinics.”
Providence went on to thank Regence’s “acknowledgment of our needs to meet rising costs and compensate our caregivers.”
Before this deal was struck, Providence received “no formal response” from Regence since their offer from Nov. 8, 2023. However, last week Providence said they “significantly moved from its Nov. 8 position” while still attempting to “ensure we can pay market competitive wages to doctors, nurses and caregivers who care for patients with Regence insurance.”
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Dean Johnson, Regence’s strategic communications manager of Oregon, released the following statement about the deal, saying in part they appreciate the patience of members who were awaiting the negotiations to conclude:
We are pleased to share that Providence Health & Services has agreed to withdraw its termination and will remain in network for Regence commercial and Medicare Advantage members.
We recognize the uncertainty these negotiations caused for some Regence members and appreciate their patience as we worked with Providence leadership to achieve reimbursement rates that are more sustainable for our members and customers.
We are grateful that our members should have no further disruption in care, and we look forward to continuing our partnership with Providence to ensure our members have access to an important care partner in our communities.
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