Earlier this week, the University of Alabama in Birmingham Health System announced that he was in contractual dispute with United Healthcarethe largest insurer in the country.
If the contract is terminated, it would leave the Alabamians with United without network access to the largest hospital in the State, the only hospital with a level 1 trauma center.
United says that it covers more than 500,000 Alabamians, while the UAB says that it serves around 1.4 million patients throughout the state.
“We will continue to negotiate with diligence with United in good faith to achieve a reasonable agreement,” said Dawn Bulagella, CEO of the UAB health system, in a statement announcing the dispute this week.
Who would be affected?
The change would apply to all UAB clinics, including St. Vincent’s installations and services provided by the doctors of UAB employees at Children’s of Alabama Hospital. This means that patients with united insurance “would be personally responsible” for costs in all these establishments. This decision would affect patients with trade and medical plans of United.
For people with United Peehip plans, UAB said: “You can see a very small cost difference, but will always be covered.”
A list of all potentially affected entities is available here.
When would change occur?
The deadline for UAB and United to conclude a new contract agreement are July 31. If they do not conclude, patients “can be personally responsible” costs from August 1.
What is the dispute?
UAB and United are pointing to the other, calling for the benefits of the opposing part and the already high costs. The two entities even started websites on the issue to assert their cause.
The UAB said that disputes were caused by unique denial rates and low payments that were often delayed.
In response, United sent a declaration to Al.comSaying that UAB is “already one of the most expensive academic health systems in the Southeast”.
“Despite this, the UAB requires an increase in two -digit prices for our commercial plans in one year as well as increases in our Medicare Advantage plans which would be part of the most expensive suppliers of our Advantage Medicare network.”
On their newly created websiteUnited said the amount that UAB is asking for an aberrant value compared to similar health systems, which makes it more expensive than all 25 university medical centers in the Southeast.
United continued by saying that the recent acquisition by the UAB of St Vincent’s has increased health care costs for Alabamians despite the forecasts, this would reduce costs.
“The history of the UAB of unsustainable rate increases as well as the increase in two-digit prices they are looking for for our commercial plans in just one year would directly make health care for self-assured employers.
United said they had proposed to extend the 60 -day contract to provide continuous access to network care for their customers, but the UAB refused.
The UAB responded to these complaints from United on Thursday evening, saying that they first asked United to engage in contract renewal conversations almost a year ago, but the insurance provider “only waited until recently – 45 days before they are required to alert its members of the potential lance – to commit”.
Bularella, CEO of the UAB Health, said that United has required rate reductions, which means that they would reimburse the UAB less for the services and treatments they provide to patients.
Bularella added that the UAB treats the most sick patients in the state and that United already pays less UAB community hospitals than it costs to provide care, contributing to hospitals.
“Medicaid was not extended to Alabama, which means that as a public security hospital, the UAB hospital alone provides more than $ 100 million per year for which it is not paid,” said Bulgarella. “United reimburses the care providers less than other insurers, denying and delaying payments to UAB health system care providers at an alarming rate, which increases the cost of care and must be taken into account in the contractual negotiations.”
This is not the first time that contractual negotiations have broken out between the two.
In 2019, the UAB announced its contract with the insurance giant would expire, citing many of the same problems. But An agreement was concluded shortly before the deadline.
Does this problem occur only in Birmingham?
Several Hospitals across the country have echoed several of the same concerns as UAB.
In northern Alabama, the health system of Huntsville hospital sent a notice of termination to United in Octoberbut finally reached an agreement to Keep the hospital on a network.
In North Carolina, Duke Health also called low reimbursement rates of the insurance provider and had a similar dispute Until it is Finally resolved in November.
Earlier this week, North Mississippi Health Services terminated his contract with United Medicare Advantage PlansAffirming that their patient’s demands were frequently delayed or refused.
What if I have any questions?
The UAB said that patients with access to access to their health system can call the back number of their insurance card for more information. They also created a website on the issue, Found here.