University of Utah Health and Regence BlueCross BlueShield announced they’ve finally reached an agreement for a new multi-year contract, right before their old contract was set to expire at the end of June. This means patients insured through Regence that currently receive in-network care through the University of Utah Health system will be able to proceed as usual.
In May, University of Utah Health and Regence both told patients they were struggling to negotiate a new contract, though each laid out a slightly different take on the situation.
The statement that U. Health sent to patients said, “If the contract lapses, Regence may ask you to pay higher out-of-pocket costs to continue receiving care at U of U Health.” While patients with some conditions could continue receiving in-network care for a limited time, U. Health said most would have to decide to either pay more to continue going to U. Health or find a new provider.
But a letter from Regence said the two companies were, “unable to agree on an increase in what we [Regence] pay them for care that will not significantly increase premiums.”
The agreement was announced on June 26 in a joint statement from both companies. The two companies said they are responsible for balancing costs and providing high quality health care, and that “We are pleased to have reached an agreement that strikes that balance.”
University of Utah employees and their families would have continued to receive in-network care even if an agreement was not reached, but U. Health treats about 70,000 to 80,000 people insured through Regence who are not U employees, according to Kathy Wilets, the senior director of public affairs.
While Regence-insured patients are relieved that they can continue receiving in-network care at U. Health, some said the last month has been frustrating and stressful as they waited for an answer.
Janet Balbierz is a private practice physician and has also been a patient at U. Health since the 1980s. She said she chose BlueCross BlueShield insurance to cover herself and her staff because it was considered in-network at U. Health.
For the last month, Balbierz said she’s thought about the ongoing negotiations almost every day. She said she has great relationships with her current health care providers and that it’s hard to set up a relationship with a new provider.
“It makes me feel not valued as a person and as a patient,” Balbierz said.
Balbierz said she’s thankful she doesn’t have to go through all of the hassles of switching insurance companies or providers, but she’s still angry “about how we got to this position.”
Balbierz said it’s not a cut-and-dried situation and she isn’t placing the blame solely on either company.
“This is a societal sort of problem with health care, in general,” she said. “Is health care a right? Is it a privilege? Do we as a society care about everybody or just certain people?”
Tere Hoffhine lives in Cottonwood Heights and received a letter in May from U. Health about the ongoing negotiations and potential stalemate. Hoffhine felt confused and helpless about the situation, and that she had no voice. She wished there was more communication with patients about what was going on throughout the process.
“It would have been nice to be involved in, you know, what are they negotiating?” Hoffine said. “I just don't understand how that works. And I don't know how just a normal working person is supposed to know all of this, and try to juggle their health care.”
Disclosure: KUER is a licensee of the University of Utah but operates as an editorially independent news organization. Employees of KUER are insured under the agreement between University of Utah Health and Regence BlueCross BlueShield.
