UVM Health Network reaches compromise on in-network coverage

Dan D'Ambrosio, Burlington Free Press
·2 min read

Nearly 2,000 Vermonters covered by UnitedHealthcare who were slated on April 1 to lose their in-network health insurance coverage at hospitals belonging to the University of Vermont Health Network − including Burlington's UVM Medical Center − have gotten a timely reprieve.

Both the UVM Health Network and UnitedHealthcare announced Friday they have reached an agreement to extend in-network coverage through the end of the year, to give plan members more time to find other health insurance coverage.

The UVM Health Network includes three hospitals in upstate New York, in addition to three hospitals in Vermont.

Dr. Sunny Eappen, president and chief executive officer of the UVM Health Network, said in a statement he was glad the network's patients would get the time they need to find a replacement for UnitedHealthcare.

Staff care for a new arrival to the University of Vermont Medical Center Intensive Care Unit (ICU) on Thursday, Dec. 2, 2021.
Staff care for a new arrival to the University of Vermont Medical Center Intensive Care Unit (ICU) on Thursday, Dec. 2, 2021.

"This situation has caused much stress and anxiety for our patients and we hope this extension helps to ease some pressure in the face of a frustrating situation," Eappen said.

Will a long-term deal be reached?

UnitedHealthcare CEO Tim Archer said in a statement that the company's "top priority" is ensuring access to health care. Archer also held out hope a long-term agreement could still be reached with UVMHN.

"This extension ensures the people and families we serve have continued access to UVMHN while we continue our good-faith efforts to reach a long-term contract with UVMHN that is affordable for Vermonters, New Yorkers and employers," Archer said.

UVMHN was not optimistic that an agreement on a long-term contract with UnitedHealthcare could be reached.

"Based on conversations with United(Healthcare) to date it is not likely we will continue to be in-network in the 2024 plan year, despite our best efforts to come to a fair agreement," UVMNH said in its news release.

More:UVM hospitals in 'deteriorating' financial position, want more money. Here's why.

UnitedHealthcare said in a news release last month that continued price hikes by UVMHN are not affordable or sustainable for people and employers in New York and Vermont

The health network responded by saying it reported a $90 million loss for fiscal year 2022, while UnitedHealthcare reported revenue growth of nearly 12% year over year, to $249.7 billion in 2022.

"UnitedHealthcare's operating earnings alone (one way of describing profits) were $14 billion in 2022, dwarfing the $3.1 billion total required annually to operate the entire UVM Health Network in Vermont and northern New York," the UVMHN news release said.

Contact Dan D’Ambrosio at 660-1841 or ddambrosio@freepressmedia.com. Follow him on Twitter @DanDambrosioVT. This coverage is only possible with support from our readers.

This article originally appeared on Burlington Free Press: Major insurer agrees to extend in-network coverage for medical center