Washington state’s Premera Blue Cross members face losing access to around 1,000 healthcare providers statewide as the contract with MultiCare Health Systems is set to expire in two weeks.
While both not-for-profit healthcare organizations have been negotiating for months, Premera’s website indicates that MultiCare initiated the process with a termination notice.
sought an interview with MultiCare, but Kevin Maloney, media relations manager for MultiCare’s Inland Northwest region, responded via email, stating that the organization is actively participating in negotiations but insists that Premera must contribute its fair share.
“Since 2019, Premera has reimbursed MultiCare well below the rate of inflation,” Maloney wrote in the email. “This is unsustainable and jeopardizes access to 1,000 healthcare providers and multiple hospitals, urgent cares, and health clinics across the state.”
David Condon, Premera Blue Cross’ vice president of Eastern Washington, said the current reimbursement rate was agreed upon in prior negotiations. He emphasized that Premera aims to stay affordable for its members and competitive in the market.
Condon acknowledged that inflation is outpacing reimbursement rates but stressed that reaching an agreement requires collaboration from both parties. He provided limited details on the current state of negotiations, noting that discussions continue.
According to the company’s website, if an agreement is not reached, Premera Blue Cross members with individual plans, University of Washington student insurance, and Medicare Advantage Plans will lose in-network access to MultiCare facilities starting June 1.
Impacted facilities in King, Pierce, South King, Spokane, Thurston, and Yakima counties include:
Auburn – MultiCare Auburn Medical Center
Covington – MultiCare Covington Medical Center
Olympia – MultiCare Capital Medical Center
Puyallup – MultiCare Good Samaritan Hospital
Spokane – MultiCare Deaconess Hospital
Spokane – MultiCare Valley Hospital
Spokane – Rockwood Clinic
Tacoma – MultiCare Allenmore Hospital
Tacoma – MultiCare Mary Bridge Children’s Hospital and Health Center
Tacoma – MultiCare Tacoma General Hospital
Yakima – MultiCare Yakima Memorial Hospital
Indigo Urgent Care Clinics
Members enrolled in Premera’s Medicare Supplement plan or the Health Maintenance Organization plan with its Sherwood HMO network will not be affected.
“Our guiding principle is to provide access to quality care, which MultiCare absolutely is, but also at an affordable price,” Condon said.
Condon noted that MultiCare faces considerable financial pressures, similar to many businesses in the state. However, increasing rates to meet MultiCare’s demands would also raise costs for companies that rely on Premera to insure their employees.
He described the situation as a balancing act, highlighting that Premera aims to meet MultiCare’s needs while ensuring predictable costs for its members.
“They’ve been pretty public about what their costs are,” Condon said. “Now the issue is what’s fair for them and what’s fair for our members who have to pay that price.”
He added that if negotiations fail, Premera members could still receive emergency care at MultiCare facilities at the in-network cost. Members who are pregnant or receiving active treatment can apply for extended in-network access to avoid any lapse in coverage.
