University of Utah Health, Regence insurance warn thousands they may not reach a contract

Regence BlueCross BlueShield and University of Utah Health are struggling to reach a contract, which could leave tens of thousands of Utahns with more limited health care options after the end of June.

Regence BlueCross BlueShield and University of Utah Health are struggling to reach a contract, which could leave tens of thousands of Utahns with more limited health care options after the end of June. (Kristin Murphy, Deseret News)


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SALT LAKE CITY — Utah's first insurance provider, Regence BlueCross BlueShield, and University of Utah Health are struggling to reach a contract, which could leave tens of thousands of Utahns with more limited health care options after the end of June.

Regence said in a statement on Tuesday that it has had a "long, strong working relationship with University of Utah Health" since the university hospital was established in 1965. The company said it has provided health insurance in Utah for over 78 years.

"Since last year, we have been working in good faith with University of Utah Health on a new contract to keep the health system, including the hospital, in our networks," the statement said.

Kathy Wilets, senior director of public relations at U. Health, said the system cares for about 70,000 to 80,000 people with Regence health insurance who are not employees of University of Utah, and another 50,000 employees of University of Utah and their families covered by Regence health insurance.

She said leaders at U. Health are confident a resolution can be reached "that prioritizes the health and well-being of our patients, our teams and our community."

In the meantime, University of Utah has taken steps to allow providers to continue caring for employees and their families as though they were in network if an agreement is not reached.

"For more than 50 years, University of Utah Health has been a trusted partner in health care for our community. We've done that by putting our patients and our employees at the forefront of all we do," Wilets said.

She encouraged Regence members to reach out to their employers to discuss the importance of U. Health's in-network status for their health care.

Wilets said U. Health provided notification to its patients to assist them with concerns and be transparent about the process.

Patients currently seeing specialists for chronic conditions, who are pregnant, or who have ongoing inpatient care at U. Health may be able to continue receiving in-network care. U. Health encouraged them to contact Regence to clarify what would be covered if an agreement is not reached.

Regence said its negotiations focus on ensuring families and businesses are financially protected and don't have significant increases in premiums, and premiums are based on what care is expected to cost.

"If providers want more money, our members and customers will pay more," its statement said.

It said the two companies can't agree on an increase in what Regence pays for the care that will not lead to a significant increase in premiums.

"We recognize how disruptive news about these negotiations can be to our members. We remain fully committed to continuing negotiations and reaching an agreement that maintains access to high-quality, cost-effective care for our Utah health plan members," the statement said.

Regence said it works regularly with providers to create contracts that control costs for patients and families; it said patients should not be in the middle of standard negotiations.

"We remain hopeful about reaching an agreement that avoids any network disruption. Our customer service team is ready to support members at this time and if a network change occurs," Regence said.

Correction: A previous version said the university was established in 1965. The university hospital was formed in 1965.

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Emily Ashcraft joined KSL.com as a reporter in 2021. She covers courts and legal affairs, as well as health, faith and religion news.

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