Empire BCBS, HealthAlliance yet to resolve contract dispute

New York health insurer Empire Blue Cross Blue Shield and HealthAlliance of the Hudson Valley based in Kingston, N.Y., are in negotiations to renew contract agreements prior to the May 31 deadline, reports Daily Freeman.

A contract that enables Empire BCBS members to pay reduced rates for medical services at HealthAlliance facilities is set to expire May 31. Officials from both organizations are currently in negotiations to renew the contract.

HealthAlliance merged with Valhalla, N.Y.-based Westchester Medical Center Health Network in March. Empire notified WMCHealth it would not honor contractual reimbursement terms the insurer had with HealthAlliance hospitals prior to the affiliation, according to HealthAlliance President and CEO David Scarpino.

Should Empire and HealthAlliance fail to arrive at an agreement, HealthAlliance providers and facilities will be out-of-network for inpatient and outpatient services starting June 1. However, emergency room services administered at HealthAlliance facilities after the deadline will be covered by Empire, according to a letter the insurer sent to members.

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