UnitedHealthcare's Medicaid managed care plan is out of network with Philadelphia-based Temple Health after the two sides were unable to reach a new contract by Feb. 1.
A UnitedHealthcare spokesperson confirmed the split to Becker's. The spokesperson said in a statement the cost of care at Temple is "significantly higher than peer hospitals participating in our UnitedHealthcare Community Plan network in the Philadelphia area, yet the health system demanded additional price hikes that are not affordable or sustainable."
"We have a responsibility to help contain the rapidly rising cost of healthcare for the state of Pennsylvania as a Medicaid plan," the statement continued. "Our goal is to renew our relationship with Temple and we urge the health system to work with us to reach an agreement on behalf of the people we serve."
A Temple spokesperson said in a statement to Becker's that the health system accepted UnitedHealthcare's termination letter "with regret," adding it was a move that "we had to make to ensure we are able to continue to provide patients the high quality services that our patients and community expect from Temple Health."
"It's regrettable that UnitedHealthcare's corporate leaders have decided to terminate the availability of services to some patients and families in our community," the statement read. "Hospitals and healthcare providers, including our dedicated doctors and nurses, are facing unprecedented challenges in providing patient care, and large insurance companies from outside of our region don't always seem to understand how healthcare is provided in Philadelphia."
UnitedHealthcare's Medicaid plan covered Temple University Hospital, Jeanes Hospital in Philadelphia and Temple's Readycare urgent care centers.