Farmers Branch, Texas-based Southwestern Health Resources is seeking a more than $900 million increase over the next 32 months in a new contract with Blue Cross Blue Shield of Texas, the Dallas Morning News reported Sept. 29.
That information came from an email the payer shared with brokers in late September, according to the report.
"By any metric, a presumptive billion-dollar increase over 32 months is considerably more than inflationary pressures demand," the email stated. "Agreeing to their proposed price increases would surely cause hardships for every business, municipality, federal employee and individual Texan served by Blue Cross and Blue Shield of Texas in the Dallas-Fort Worth metroplex."
BCBS confirmed to the Morning News the emails were sent to brokers and consultants so they could explain why it is at odds with Southwestern Health Resources, which operates 29 hospitals, including Presbyterian in Dallas, Arlington Memorial and Harris Methodist in Fort Worth. Southwestern Health Resources will be out of network with the payer if a new contract is not reached by Oct. 3.
Southwestern Health declined to confirm the $900 million requested increase to the Morning News and suggested it was part of the negotiation process.
"Negotiations always have one party start high and one start low and you move together in some way,” Southwestern Health Chief Marketing Officer Darin Szilagyi told the outlet. "We are asking for an increase significantly below the inflationary pressures that we all are experiencing."