Central Georgia Health System Threatens to Terminate Blue Cross Blue Shield Contract

Central Georgia Health System, based in Macon, and its affiliates are preparing to terminate their contract with health insurer Blue Cross Blue Shield of Georgia.

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Although CGHS is continuing to negotiate with the insurer, it plans to ax the contract today if the two organizations cannot reach an agreement, according to a news release. CGHS will continue to accept BCBS insurance as an out-of-network provider following contract termination.

According to the release, negotiations have stretched for almost nine months between the health insurer and health system. “Throughout this process, Central Georgia Health System has offered to continue substantial discounts to Blue Cross Blue Shield of Georgia in hopes of continuing our contract renewal seamlessly,” Rhonda Perry, CFO for CGHS, said in the release. “However, in order to achieve optimal patient care, we must address medical inflation and substantial declines in reimbursement. We are also sensitive to concerns about future premium increases and have kept our proposals well within range for the Georgia market.”

Bert Kelly, BCBS of Georgia’s director of communications, issued a statement saying the health insurer will “continue to work diligently to reach a mutually beneficial agreement with CGHN at rates and contract terms that are reasonable, fair and affordable.” Additionally, the insurer has activated underlying agreements with more than half of the physicians affiliated with CGHN, meaning those clinicians will still be in-network after the contract is terminated.

“We want to assure BCBSGa members that services rendered by CGHN are available from other in-network area providers, which include more than 185 hospitals and 16,000 physicians throughout Georgia,” Mr. Kelly says.

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