Dec. 6, 2024

Regence is, once again, misleading its members about their negotiations with Salem Health. We’re setting the record straight, and we will continue to do so as long as Regence distorts the facts.

In their most recent blog post, Regence claims they regularly negotiate with health care providers to get their members the best prices. But the reality is that their negotiations this year alone have placed nearly half a million Oregonians’  health care in jeopardy with four different health systems: Providence, Legacy, Salem Health and now, Peace Health.

If Regence was negotiating with the best interests of their members in mind, they wouldn’t wait to reach agreement with Providence and Legacy until the very last day of the contract. If they were truly concerned about the impact of increasing costs to their members, they wouldn’t have requested a 9.3% average increase across policies for individuals and a 13.6% average increase for small groups in 2025.

Regence states they believe doctors and nurses deserve to be paid fairly for the care they provide to patients. We couldn’t agree more. Health care is expensive, and we all need to work together to lower costs. This cooperation has been especially important in the last few years as we have experienced inflation and seen increases in labor expense, supplies and medication. All the major insurance companies we contract with recognize the financial challenges hospitals and health systems are facing and were willing to come to the table to discuss how we can work together in the best interest of our mutual patients. All of them except Regence.

We’ve said it before, but it merits repeating: When one party refuses to pay their fair share, others must make up the difference. When Regence reimburses hospitals and clinics at less than fair market rates, it falls to other insurance companies, to health systems, and to the patients to close the gap. What Salem Health is asking Regence to pay is not unreasonable. We have offered them a fair and equitable contract at standard market rates.

Regence says they want to put people over profits. We’re waiting for them to do that. 

Nov. 14, 2024 

In their latest blog post, Regence cites examples of alarming increases for an emergency room visit or a surgical procedure based on the rates requested by Salem Health. The reality is that Regence has been unwilling to pay their fair share for years, causing others to make up the difference. This increase would simply bring them in line with what other insurance companies are paying.

Another reason Regence gives for refusing to agree to a fair contract is they are obligated by the state to stay at or below the cost growth target of 3.4%. But Regence has already raised their premiums by amounts that far exceed this — individual rates are up 8.2% for 2025 and small group rates will increase by 13.5%. Regence has raised their premiums by more than 3.4% every year since 2022. They’ve done this despite posting huge profits — nearly $500 million — between 2020 and 2023, a time when many hospitals were struggling financially, and many patients and their families were battling financial, economic and physical worries.  

Salem Health has offered, and continues to offer, Regence a fair and equitable contract at our standard market rates, seeking agreement before the Dec. 31 expiration date. Given the lack of progress in negotiations and Regence’s unwillingness to pay fair market rates that other insurance companies pay, we fear it is now likely that Salem Health will no longer be in network for Regence after Dec. 31, 2024.

However, we saw Regence drag their conflicts with Providence and Legacy earlier this year to the very end of the contract period; and they may choose this stress and anxiety for their members over resolution again. We know that this is genuinely concerning, and we encourage you to contact Regence with questions you have about how this will impact your coverage.

We will provide further updates as new information becomes available.

Oct. 9, 2024

Salem Health recently sent a letter to patients with Regence BlueCross BlueShield insurance alerting them to the possible expiration of our contract with Regence on Dec. 31, 2024. Despite our repeated and ongoing attempts to negotiate a new contract for 2025, Regence refuses to agree to fair market terms.

We are very concerned about the impact to our patients who have Regence as their primary insurance. If we are unable to reach an agreement with Regence, all Salem Health Hospitals and Clinics’ locations will be out-of-network for Regence members after Dec. 31, 2024.

Despite their claim that “premiums and out-of-pocket costs for medical care directly reflect what providers charge," Regence’s reimbursement rates have been lagging the market for years. While other insurance companies have partnered with providers to keep up with rising costs, Regence has steadfastly refused. At the same time, Regence has posted huge profits in net income — nearly $500 million since 2020 — and continued to raise premiums for their small group members by 47% and by 33% for individual members during this period. Reimbursement rates have not increased anywhere close to those numbers.

We have been asking Regence to play fair for years because Salem Health doesn’t believe that one insurance company should receive an advantage over another. When this happens, the benefit enjoyed by one becomes a hardship borne by the health system, other insurance companies and you, the patient. If every insurance company acted like Regence, we would not be able to afford to provide the care our community needs.

Salem Health has offered Regence a fair contract at our standard market rate — the same rates as other insurance companies pay — and we remain ready to negotiate.

If you have questions or concerns you would like to share, please feel free to email us at cr@salemhealth.org. You may also contact Regence for further information by calling the customer service number found on the back of your insurance card.

We look forward to continuing to serve you.