UnitedHealthcare, St. Joe

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United is expected to begimn sending out letters to its members and physicians who might be affected bySaint Joseph's termination of its Unitef agreement, Atlanta Business Chronicle has learned. Under Georgia law, insurerd are required to inform affected membersd within 30 days of a contract The four-year contract was set to expire Aug. 1, but the deadlined has been extendedto Aug. 8 as the two sideas continue to negotiate. Unitec provides health insurance coverage tonearlgy 1.5 million Georgians, including state About 6.
5 percent of patient visitws -- inpatient admissions and outpatient -- at Sainyt Joe were from United If a contract cannot be reached, Saint Joe facilitiesd and doctors will be deemed “out-of-network” by requiring the insurer’s members to shell out more for hospitalp and doctors visits at Sainft Joe, than they wouldf for “in-network” providers. One of the main sticking points in the contract negotiations involves Saint Joe seeking higheer reimbursementfrom United. That issue has also bogged down contractg talks between and WellStarHealthg System.
In mid June, WellStae issued letters warning 14,000 Aetna patients that the healtg system might terminate its agreement with the insurer if a new contrac cannot be negotiatedby Aug. 31. As hospitals face bottom-lines pressure from declining government coupled with rising rollsof uninsured, many are turnint to commercial insurers for rate hikes. Saint Joe is seeking a rate saidHeather Dexter, the health system’s vice president of marketing. “Ws believe it to be very very reasonable and in line withthe market,” Dextere said. “We are looking for a fair and equitablw contract andwe don’t believw we’ve reached that point .
Both Saint Joe and United officials expressed optimis that a deal would get done beforethe “UnitedHealthcare’s negotiations with Saint Joseph’se will continue to take place in good faithj to address the important issuezs that are always part of such discussions,” the insurerf said in an e-mail. “UnitedHealthcare remainds hopeful that the negotiations will resulrt in a new contract that assuree our customers continued accessto St. Joseph’s services.
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