BCBS, Texas Health Resources settle contract dispute

Blue Cross Blue Shield of Texas and Arlington-based Texas Health Resources agreed to renew a contract that had been in dispute over a proposed rate increase by the health system and disagreement over the language of a termination clause, according to the Dallas News.

"Through determined efforts on both sides of the table, the agreement will keep Texas Health Resources in the HMO Blue Texas (Blue Essentials), Blue Choice PPO (BCA), Blue Advantage HMO (BAV) and Blue Cross Medicare Advantage PPO networks with no disruption in service," the two organizations said in a joint statement, according to the report.

The current agreement between BCBS of Texas and THR was due to expire Dec. 31.

At the center of the dispute was THR's request for a 5 percent hike in reimbursement. BCBS refused, purporting the increase would add up to $57 million a year and members would ultimately bear the burden.

Earlier this week, the organizations agreed on a lower percentage rate increase, though that figure has not been disclosed. The length of the newly signed agreement is also being kept under wraps, despite prior concerns that language of a termination clause in the agreement could leave THR's in-network status in limbo again within a matter of months, according to the report.  

More articles on payer issues:
5 payer highlights this week
How the 'big 5' payers performed financially in 2016
Companies overseeing Iowa's privatized Medicaid say program is 'drastically underfunded'

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.


Top 40 Articles from the Past 6 Months