Huntsville Hospital Health System has sent a notice of termination to insurance giant UnitedHealthcare. (Paul Gattis | pgattis@al.com)Paul Gattis
Huntsville Hospital Health System announced Thursday it has sent a notice of termination to UnitedHealthcare.
The decision came, according to a statement from the system, after “several months of disappointing negotiations” with the “insurance giant.”
“HH Health made the difficult decision to end the participation agreement between the insurer and HH Health member hospitals,” the system said in a statement. “The decision impacts United’s commercial health insurance and Medicare Advantage plans. It does not impact United’s VA managed care plan for veterans.”
According to HH Health, patients who have UnitedHealthcare insurance may continue to use Huntsville Hospital Health System as an out-of-network hospital.
Retired educators (PEEHIP) or retired state employees (SEIB) with UHC Medicare coverage will see no impact on out-of-pocket expenses, according to the system.
Among the hospitals in the HH Health System:
Based in Minnesota, UnitedHealthcare is the insurance brand of UnitedHealth Group, the world’s largest health care company by revenue.
In a statement, UnitedHealthcare said it hopes to reach an agreement that is “affordable and sustainable for Alabama residents and employers while ensuring continued, uninterrupted access to the health system.”
“Huntsville Hospital Health System issued a notice to end our contract for its hospitals and is demanding an over 25% price hike in just one year, despite already being nearly 20% higher than the average cost of other hospitals in our network in northern Alabama,” UnitedHealthcare said. “We are committed to continued good-faith negotiation with the goal of reaching an agreement that ensures continued, uninterrupted network access to the health system’s hospitals. We urge Huntsville Hospital Health System to provide a proposal that’s realistic and affordable for Alabama families and employers.”
A United spokesperson said HH Health System’s physicians will not be impacted and continue to remain in the network for commercial, Medicare Advantage and IFP members, regardless of the outcome of negotiations.
According to Huntsville Hospital, UnitedHealthcare has not paid it the amount contractually owed from the current agreement and has a denial rate on patient claims that is 75 percent higher than other similar insurers.
“The decision was not made hastily, and we continue to pursue a resolution,” HH Health System said in its release. “For more than a year, HH Health has been working towards a mutually beneficial contract with UnitedHealthcare. To date, HH’s efforts have not been met with the same level of care from the Fortune 500 Company.”
UnitedHealthcare subscribers who have questions should contact UnitedHealthcare at 1-877-298-2341. CMS Medicare Open Enrollment begins Oct. 15 through Dec. 7.
Patients can view plan options at the Medicare website.
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