The UAB Health System and UnitedHealthcare of Alabama are still negotiating health plan contracts for patients set to expire on July 31.
If an agreement isn't reached by July 31, patients covered by UnitedHealthcare at UAB Health System facilities may have to pay their health care bills out-of-pocket, according to UAB on Wednesday.
The health plan contracts between UnitedHealthcare of Alabama, Inc., and multiple UAB Health System entities are set to expire this summer. This applies to both commercial and Medicare Advantage plans and affects all UAB-owned and affiliated entities, including, among others, UAB Hospital; The Kirklin Clinic of UAB Hospital; all UAB Medicine primary, specialty and urgent care clinics; UA Health Services Foundation; UAB Callahan Eye and all physician clinic locations; UAB Medical West and all physician locations; Cooper Green Mercy Health Services and all UAB St. Vincent's facilities, including Birmingham, East, Blount, Chilton and St. Clair; and all UAB St. Vincent's surgery center, urgent care and physician locations, as well as Baptist Health hospitals and its surgery centers and physician locations in Montgomery and Autauga counties. The expiration also affects services provided by UAB- and UAB St. Vincent's-employed physicians, regardless of the location of care, including at Children's of Alabama.
Patients with United insurance will continue to have uninterrupted access to the above entities through July 31.
Starting August 1, if agreement cannot be reached, United members who choose to receive care at these entities may be personally responsible for the costs of services rendered. Some patients may qualify to continue accessing care after July 31, pursuant to the continuity of care terms offered by their plan, according to UAB.
"We are deeply disappointed that UnitedHealthcare has created this uncertainty for our patients," said UAB Health System CEO Dawn Bulgarella. "We will continue to diligently negotiate with United in good faith to reach a reasonable agreement before July 31. Our goal is to remain a participating provider and continue delivering the highest-quality care to the people of Alabama. We encourage patients and employers to contact United and express the importance of keeping UAB Health System entities in-network."
UAB listed "below-market reimbursement rates, excessive claim denials and delayed payments — all of which threaten providers' ability to deliver timely, high-quality care" as reasons for why a new agreement hasn't been reached yet.
"United's approach to contract negotiations has already led to breakdowns with numerous providers — and more may follow," Bulgarella said. "Their demands often ignore the economic pressures facing health care systems, while their public statements frequently paint an incomplete or misleading picture."
UPDATE: After publication, a spokesperson for UnitedHealthcare responded in a statement, saying, “UAB is one of the most expensive health systems in the southeast, yet they’re demanding a double-digit price hike in one year for our employer-sponsored commercial plans as well as a significant rate increase for our Medicare Advantage plans.”
"We proposed to extend our contract 60 days to provide people continued network access to the health system without putting them in the middle of our negotiation. UAB refused," the UnitedHealthcare spokesperson said. "We have presented UAB with multiple proposals that demonstrate our willingness to compromise as part of good-faith negotiation. Unfortunately, UAB continues to repeat its demands for significant price hikes that are not affordable for consumers or employers. Our goal during this negotiation is the same as our members -- to help them access the care they need and to make health care as affordable as possible. We urge UAB to join us at the negotiating table and help make health care more affordable for the people and employers we serve."
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