As of Jan. 1, most of the Renton, Wash.-based health system’s Oregon locations are out of network with Aetna, a Providence spokesperson told Becker’s. Providence Medical Group and the system’s facilities in southern Oregon will remain in network through Feb. 16.
“Other insurers have agreed to step up and share in the increasing costs of health care, but Aetna has not been willing to do so,” the spokesperson told Becker’s.
Around 9,000 Providence patients in Oregon have Aetna coverage, the spokesperson said.
In a statement shared with Becker’s, an Aetna spokesperson said Providence asked for price increases “higher than the market rate” to renew its contract with Aetna.
“We want to reach an agreement that brings Providence back into our networks and have offered them market competitive rate increases, but we cannot agree to terms that would burden local businesses and their employees with significant cost increases,” the spokesperson said.
The split does not affect benefits for Providence employees, a spokesperson for the health system said, as Aetna administers Providence’s employee health plan but the plan itself is self-funded.
Public disputes between payers and providers are becoming more common. According to data from FTI Consulting, a financial and business consulting firm, in the third quarter of 2024, there were 37 contract disputes covered by a traditional media outlet, the highest since the first quarter of 2022. Of these 37 disputes, 12 failed to reach a timely agreement.
In September, Aetna and Providence hospitals in Washington reached a new contract agreement before going out of network.
