State Unions Blast Hartford HealthCare For Making Them ‘Pawns’ In Insurance Talks

The union representing tens of thousands of state employees blasted Hartford HealthCare Friday, claiming the hospital network is using members and their health coverage as “pawns” in an effort to gain advantage in stalled contract talks with Anthem Blue Cross and Blue Shield over reimbursement rates for medical treatment.

The bargaining coalition, representing more than 100,000 public employees, retirees and family members, accused Hartford HealthCare of pursuing unrealistically high reimbursement rates and of rejecting a short-term compromise that would have guaranteed uninterrupted health coverage for tens of thousands of patients while a new contract is pursued.

“If Hartford Healthcare had accepted this offer, Anthem participants, including the many thousands of our members affected, could have continued to receive treatment from Hartford Healthcare providers while Hartford Healthcare and Anthem continued the negotiations necessary to work out their dispute,” union negotiator Daniel Livingston wrote in a letter to Hartford HealthCare CEO Elliot Joseph.

“Instead, the fear and suffering of thousands of employees and their families has become Hartford HealthCare’s unearned currency in its power struggle with Anthem.”

The negotiations have been increasingly hostile, with the hospital network already suing once. A Hartford HealthCare spokesman called Anthem’s proposal of a temporary compromise “a stall tactic designed to stop patients from looking for alternate coverage.”

“The real goal of Anthem’s “extension” was to preclude patients from seeking other insurance plans during open enrollment period, when people can select other insurance companies that Hartford HealthCare is a part of, which is underway for many, including Medicare Advantage patients,” a Hartford HealthCare spokesman said. “Given how far apart we are in negotiations, an ‘extension’ would just add more confusion to patients and caregivers.”

For years, Hartford HealthCare and Anthem negotiated rates, which included the hospital group in the insurer’s network of providers. But their most recent contract expired Sept. 30 and the parties, trading accusations of greed and intimidation, have been unable to agree to new rates for certain medical procedures.

In the absence of an agreement, Hartford HealthCare has been removed from Anthem’s network of health providers, leaving tens of thousands of Connecticut patients with the prospect of higher out-of-pocket, out-of-network costs for treatment. Patients with “true emergency conditions” can receive treatment at any Hartford HealthCare facilities and pay the in-network rate.

Hartford HealthCare said Friday that “we are deeply concerned that we remain far apart at this date, and do not appear to be close to a resolution.”

The Hartford HealthCare network includes Hartford Hospital, the Hospital of Central Connecticut in New Britain, MidState Medical Center in Meriden, Backus Hospital in Norwich, Windham Hospital in Willimantic and the Institute of Living, a Hartford-based institution that treats mental illness and other health conditions.

Anthem Blue Cross and Blue Shield in Connecticut is part of one of the nation’s largest health benefits companies, which provides coverage to one in eight Americans. Anthem is Connecticut’s largest commercial health insurer, covering more than 1 million state residents — including many state employees.

The parties have kept details of their disagreement private. But the union claimed on Friday that “facts” that have so far become public suggest that the pace at which Hartford HealthCare is pursuing rate increases shows it is interested more in growth than the delivery of treatment.

“Those facts include Hartford Healthcare’s receipt of increases compounding at over 65% in the last 7 years, and demanding increases over 6% per year in the upcoming agreement,” the union letter said. “And Hartford Healthcare’s use of ever increasing amounts of healthcare dollars in what appears at least to be driven more by an attempt to gain market share and power than an effort to improve medical services for patients and communities.”

The union said the numbers cited in its letters were provided by Anthem to its self-insured clients and were confirmed by Anthem before delivery of the letter. A hospital spokesman declined to discuss the numbers.

Under the temporary solution rejected by Hartford HealthCare, the union said Anthem had agreed to reimburse Hartford HealthCare under rates in the expired contract with a promise to retroactively compensate the hospital network for any increase in rates negotiated in the next contract.

Hartford HealthCare said it is negotiating in good faith, as evidenced by its ability to reach agreements with other insurers.

“Hartford HealthCare has been in active negotiations with Anthem since Oct. 26, 2016 — ample time to reach an agreement,” a spokesman said. “HHC spends many months negotiating agreements with insurance companies; in all cases except with Anthem, we always find common ground. A good example is HHC’s ability to enter a contract with Aetna three months early, which we announced last month.”

The State Employees Bargaining Agent Coalition, which wrote the letter, represents about 70,000 members and retirees and, indirectly, another 70,000 family members. The union said another 100,000 municipal government employees are joined in its medical coverage with Anthem. Tens of thousands of the employees have Hartford HealthCare physicians as primary care providers, the union said.

“We urge you to end this dispute immediately by accepting reasonable reimbursement increases in the new agreement,” the union letter said. “At the very least, and until that happens, we urge you to accept Anthem’s offer to continue treating Anthem participants under the current rates with the promise of retroactivity once the new agreement is reached. Hartford HealthCare’s patients are its life blood, and its moral responsibility. They should not be treated as pawns.”