Portland-based Legacy Health announced Tuesday that the health system is preparing to terminate its contract with insurance provider Regence BlueCross BlueShield on March 31. The move is part of a Legacy effort to “secure fair, reasonable and competitive increase in reimbursement for care.” The statement said the contract will be terminated if talks between the companies reach an impasse.
Legacy said Regence hasn’t kept up with rising expenses in health care, driven by inflation and increasing costs for supplies and labor.
In its own Feb. 6 statement, Regence said Legacy was going public with discussions early and alarming customers and members.
“Our premiums are based on what we expect care to cost,” Regence’s statement said. “If providers demand more money, our members and customers will pay more.”
