Hartford Hospital and Anthem Blue Cross Blue Shield of Connecticut are back at the negotiating table after talks over a new contract between the two sides broke down in recent weeks.
James Blazar, the hospital’s senior vice president and chief strategy officer, told HBJ Today on Tuesday that the two sides met Monday, but still remain far apart on an agreement over compensation rates.
“Up until Friday we weren’t at the table talking,” Blazar told HBJ Today. “We are back at the table right now, but we still remain far apart. Hopefully the discussions will continue.”
Over the past several months, Anthem and Hartford Healthcare have been in talks to renegotiate contracts for Hartford and Windham hospitals, but both sides have been unable to reach an agreement.Â
The contract is significant for Hartford Hospital because 20 percent of its customers, including Medicare patients, are covered by Anthem.
Meanwhile, Blazar said Hartford Hospital’s contract with another major health insurer, UnitedHealthcare, is also in negotiations.
Blazar said those discussions “are going well.”
“I feel like there are very legitimate solid discussions going on between both sides,” said Blazar, who wouldn’t speculate when or if an agreement would be reached between the two.
Anthem has also been negotiating with Bristol Hospital for a new contract for more than a year, but has failed to reach an agreement. If both sides don’t reach a middle ground by Nov. 1, Bristol Hospital will no longer be a participating hospital with Anthem.
In a statement Anthem said it “has proposed increases to both hospitals that would continue to provide them with reimbursement at a margin over their costs. Anthem is seeking an agreement with the hospitals that will allow our members access to quality health care, while trying to manage the cost of health care and rising premiums.Â
“Any increase agreed to by Anthem will be experienced by employer groups and members in the form of increased premium payments and member coinsurance. Our responsibility to our customers will not allow us to increase this burden to the degree currently being requested by the hospitals.”
Blazar said when compared to other peer group hospitals, Hartford Hospital’s costs are lower. He said Hartford Hospital requires higher rates than smaller hospitals because they provide higher end care. For example, Hartford Hospital provides Life Star Helicopter services, and has spent $6 million on a new heliport and $8 million on a new helicopter.
“The rates that we are looking for are rates we need to provide complex services,” Blazar said.
Blazar and Anthem declined to provide specifics about the rate increases that are being requested.
The Hartford Business Journal reported earlier this year that hospitals and private insurers were likely headed for prolonged and tense negotiations over reimbursement rates because of the economy and federal health care reform.
Many in-state hospitals are getting squeezed on Medicaid and Medicare reimbursement rates as the federal government reins in spending so it can expand insurance coverage to millions of uninsured Americans.
Hospitals are also seeing fewer insured patients because of the economy and their investments portfolios have also taken a beating.
At the same time, health insurers are facing intense pressure to rein in rate increases, which is forcing them to be tougher on negotiations with physicians and hospitals.
Health insurers are demanding that hospitals and doctors provide more efficient care to help reduce costs.
