Brewer, Maine-based Northern Light Health said it has agreed to engage in mediation with Anthem Blue Cross Blue Shield in a “last-ditch effort” to resolve a contract dispute between the parties.
Northern Light’s Aug. 26 announcement comes after the system said earlier this month that it “made the difficult but necessary decision” to end its relationship with Anthem, citing payment delays, administrative burdens and what it calls misleading public narratives from the insurer. Anthem has said that Northern Light is seeking a 30% price increase over three years that “is not in the best interest” of its members.
“We cannot predict whether mediation will be successful should Anthem agree to this process, but it is the right thing to do as we continue to prioritize the best possible outcome for our patients,” Northern Light Executive Vice President and CFO James Rohrbaugh said in a statement.
An Anthem spokesperson told Becker’s Aug. 28 that the company is “pleased that Northern Light agrees with Anthem about taking this next step in our negotiations.”
If the two sides are unable to come to an agreement, Northern Light physicians and some ancillary services will be out of network with all commercial Anthem plans on Oct. 1 and all hospital-based services on Dec. 31. The entire health system, including hospitals, clinics and physicians, will be out of network with all Anthem Medicare Advantage plans on Jan. 1.
