Impasse Between Regence BlueCross BlueShield of Oregon and Legacy Health: Could Lead to a Significant Increase in Healthcare Costs for Thousands of Patients

If an agreement is not reached between Legacy Health and Regence BlueCross BlueShield of Oregon, patients insured with Regence could see a significant increase in their healthcare costs. This is because the contract between the two organizations expires on Sunday without a new agreement in place, and if this happens, providers may become out of network. Legacy Health has warned 200,000 customers of this possibility and advised those with scheduled appointments after March 31 to contact their insurance company for information on in-network vs. out-of-network costs.

Both sides in this situation seem to be taking a tough stance during negotiations. While Regence claims to have offered Legacy a competitive contract that has not yet been accepted or rejected, Legacy points out that Regence has been profitable and stockpiling cash while healthcare providers like Legacy have been struggling in the wake of the COVID-19 pandemic. The financial disparity between these two organizations is significant: while Legacy reported a loss of $172 million in the last fiscal year, Regence reported a 4.8% profit on billions of dollars in revenue.

The outcome of this contract negotiation will determine the future costs and network access for Legacy patients insured with Regence BlueCross BlueShield of Oregon. It remains to be seen whether both sides will be able to reach an agreement before the deadline or if we will see an increase in healthcare costs for thousands of patients as a result of this impasse.