CHI Memorial, UnitedHealthcare dispute halts coverage for 5k Chattanoogans

Negotiators from CHI Memorial in Chattanooga, Tenn., and UnitedHealthcare failed to reach a network agreement before their previous contract expired Monday, affecting coverage of roughly 5,000 UnitedHealthcare members in the region, Times Free Press reports.

Officials from both organizations attributed the impasse to disagreements over reimbursement rates.

"We offered a new contract that would increase how much CHI is paid every year," UnitedHealthcare said in a statement issued Nov. 1. "But they refused and are insisting on raising costs at their hospitals by nearly 20 percent over three years."

But CHI officials argued the insurer's offer was unreasonable and unjust.

"Our inability to finalize a contract by the expiration date is a direct result of UnitedHealthcare's failure to accurately and fairly reimburse CHI Memorial for services and care provided to UnitedHealthcare members," the healthcare system said in a statement. "This is not to simply renegotiate contract payment rates, but to correct inequities in the contract."

Negotiations to resolve the dispute are ongoing, according to the article.

CHI Memorial facilities affected by the network change include CHIMemorialHospital Hixson (Tenn.) and CHI Memorial Ooltewah (Tenn.) ImagingCenter. Physicians at Memorial Health Partners Foundation and The Chattanooga Heart Institute are also considered out-of-network.

The network change impacts about 5,100 UnitedHealthcare customers in the Chattanooga area who have commercial group and individual plans, healthcare exchange plans and AARP Medicare Complete plans, according to the article.

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