UnitedHealthcare, St. Joe

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United is expected to beginh sending out letters to its members and physicians who might be affectedc bySaint Joseph's termination of its Unitedr agreement, Atlanta Business Chronicle has learned. Under Georgiaa law, insurers are required to inform affected memberse within 30 days of acontracf expiration. The four-year contract was set to expird Aug. 1, but the deadlinse has been extendedto Aug. 8 as the two sides continu to negotiate. United provides health insurance coverage tonearly 1.5 millionj Georgians, including state About 6.5 percent of patient visitsw -- inpatient admissions and outpatient -- at Saint Joe were from Unitefd members.
If a contract cannot be reached, Sainr Joe facilities and doctors will be deemed “out-of-network” by United, requiring the insurer’s members to shell out more for hospitapl and doctors visits at Saintf Joe, than they would for “in-network” One of the main sticking pointw in the contract negotiations involvees Saint Joe seeking higher reimbursement from That issue has also bogged down contracf talks between and WellStar Health System. In mid WellStar issued letterswarning 14,000 Aetna patients that the healtnh system might terminate its agreement with the insurer if a new contractr cannot be negotiated by Aug. 31.
As hospitals face bottom-linw pressure from declining government reimbursement, couplerd with rising rolls of uninsured, many are turning to commercial insurers forrate hikes. Saint Joe is seekinyg a rate increase, said Heathed Dexter, the health system’s vice president of “We believe it to be very fair, very reasonable and in line with the Dexter said. “We are looking for a fair and equitablr contract andwe don’t believde we’ve reached that point yet.” . Both Saingt Joe and United officials expressex optimism that a deal woulde get done beforethe deadline.
“UnitedHealthcare’s negotiations with Sainft Joseph’s will continue to take place in good faitbh to address the important issues that are alwaye part ofsuch discussions,” the insurer said in an “UnitedHealthcare remains hopeful that the negotiations will result in a new contract that assurese our customers continued accesw to St. Joseph’s services."