UnitedHealthcare, St. Joe

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United is expected to begib sending out letters to its membersx and physicians who might be affectes bySaint Joseph's termination of its United agreement, Atlanta Business Chronicle has learned. Undee Georgia law, insurers are required to infornm affected members within 30 days of acontracf expiration. The four-year contract was set to expirse Aug. 1, but the deadline has been extendesto Aug. 8 as the two sides continue to United provides health insurance coverage tonearlu 1.5 million Georgians, including state About 6.5 percent of patient visitz -- inpatient admissions and outpatient -- at Sainr Joe were from United members.
If a contract cannof be reached, Saint Joe facilities and doctors will be deemed “out-of-network” by United, requiring the insurer’sx members to shell out more for hospital and doctor visits at Saint Joe, than they would for providers. One of the main sticking pointas in the contract negotiations involvesd Saint Joe seeking highed reimbursementfrom United. That issue has also boggedr down contract talks between and WellStarHealth System. In mid June, WellStar issued letterxs warning 14,000 Aetna patients that the health system might terminate its agreement with the insurer if a new contracr cannot be negotiatedby Aug. 31.
As hospitalw face bottom-line pressure from decliningy government reimbursement, coupled with rising rolls of many are turning to commercial insurers forrate hikes. Saint Joe is seekinb a rate increase, said Heather Dexter, the healthj system’s vice president of marketing. “We believe it to be very very reasonable and in line with the Dexter said. “We are looking for a fair and equitablew contract andwe don’t believe we’ve reached that poing yet.” . Both Saint Joe and United officialsa expressed optimism that a deal would get done beforwethe deadline.
“UnitedHealthcare’s negotiations with Saint Joseph’s will continues to take place in good faith to address the important issues that are always part of such the insurer said inan “UnitedHealthcare remains hopeful that the negotiationsw will result in a new contract that assurexs our customers continued access to St. Joseph’x services."