Citing inadequate reimbursement for care, The Eastern Connecticut Health Network says it is terminating its provider contract with United Healthcare/Oxford Health Plans next month.
Termination of the agreement, which was announced Tuesday and will be effective Oct. 15, means that patients with United or Oxford commercial insurance, including Golden Rule and Definity Plans, will be affected.
It’s not clear how many ECHN patients will be impacted.
ECHN, which includes Manchester Memorial Hospital and Rockville General Hospital, said it will continue to provide emergency care to all United Healthcare or Oxford Health Plan members, and those with out-of-network benefits may continue to access the network for all other services.
The termination does not affect patients covered under any Medicare Advantage plan, such as Secure Horizons, Evercare, AARP Medicare supplemental plans or any other Medicare plans.
“After many months of discussion, we have not received any reasonable contract proposal from United/Oxford that ensures adequate reimbursement for the care our health system provides to its members,” said Michael Veillette, senior vice president for finance and information services. “ECHN has not seen a rate increase from United/Oxford since 2003 resulting in payment rates that are well below the market. We cannot allow the quality of patient care to suffer by agreeing to these rates, and unless United/Oxford changes its position, we find no other alternative but to end our relationship with them.”
In a written statement, ECHN said the rough economy and other increasing pressures on health care providers, including below-market reimbursement rates from commercial insurers and reduced reimbursements by Medicare and Medicaid, is putting pressure on the organization’s margins and ability to provide high-quality patient care.
United Healthcare did not immediately return a request for comment.
