In the second public contract impasse in a month’s time, Fairview Health Services says it might leave UnitedHealthcare’s commercial network next year, which would affect about 125,000 patients who get health insurance through their employers. The current contract ends on December 31, 2025.

Fairview says it will start mailing letters early next week alerting patients to the possible insurance disruption.

The health system says UnitedHealthcare’s payment rates over the past five years have not kept pace with Fairview’s cost pressures from inflation, worker shortages and the COVID-19 pandemic. The insurer’s contract demands would force service cuts and limit access for patients, Fairview says, while adding layers of administrative complexity that delay or deny payment for medically necessary care.

Eden Prairie-based UnitedHealthcare says Fairview is demanding a 23% price hike that would boost overall costs, delivering a financial blow to employers and workers. Twelve employers would see their costs increase by $1 million or more each, UnitedHealthcare says, arguing that Fairview’s price hikes would make it significantly more expensive than other health systems in the Twin Cities.

Source: Minneapolis Star-Tribune via InsuranceNewsNet