Some of the state’s largest employers weighed in Tuesday on the Hartford HealthCare and Anthem Blue Cross Blue Shield contract impasse, calling for resolution of a disagreement over reimbursements for medical treatment that threatens coverage for tens of thousands of patients.
“We expect a resolution that improves health care quality and access, and insures that high quality care remains affordable for both patients and employers,” the employers said in a letter. “It is in everyone’s collective best interest — including your own — to immediately return to the negotiating table and resolve this dispute once and for all.”
The letter was addressed to Jill Hummel, president and general manager of Anthem Blue Cross Blue Shield in Connecticut and Elliot Joseph, president and CEO of Hartford HealthCare. It was signed by State Comptroller Kevin Lembo, West Hartford Mayor Shari G. Cantor, West Hartford Town Manager Matthew Hart, Mohegan Tribal Chairman Kevin Brown, and Bob Tessier, executive director of the CT Coalition of Taft-Hartley Health Funds.
Jeff Hamilton, assistant general manager of the Mohegan Sun, said as many as 4,000 of the 7,000 employees at the casino and resort are affected by the dispute. Mohegan Sun, which is self-insured, pays Anthem to administer its health insurance, he said.
Mohegan Sun spends more than $15 million a year for costs related to Hartford HealthCare and leaders of the tribal business worry about escalating health care costs, some of which are passed on to employees.
“It goes on the backs of our team members,” he said.
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 care.
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 last week 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.
Hundreds of thousands of private and public employees in Connecticut are, or could be affected by the dispute over how much Anthem should pay Hartford HealthCare to reimburse it for the costs of medical treatment it provides. A significant portion of those patients are state employees.
Thomas Woodruff, director of the health care policy and benefit services division of the state comptroller’s office, sent a letter to 50,000 Anthem members on the state health plan who have used HHC providers.
In the letter, he outlined their health care alternatives during “this unacceptable disruption” and included a list of Connecticut hospitals that can be used to avoid paying higher costs for nonemergency care.
To avoid financial risk, “we recommend that Anthem members do not seek non-emergency care at any HHC facility,” Woodruff said.
Anthem and HHC are keeping details of their talks private. But last week, the bargaining agent for state employee unions complained — based, it said, on facts it received from large, self-insured employers — that that the pace at which Hartford HealthCare is pursuing rate increases suggests 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 employee unions and other sources also said Hartford HealthCare rejected a temporary measure by which Anthem would reimburse it 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 letter Friday by large employers complained the impasse in negotiations is “creating unnecessary stress and anxiety.”
“As the impasse drags into its fifth week, our employees, members and their families are expressing heightened frustration with both Hartford HealthCare and Anthem,” the letter said.“Their frustration and desire for in-network care is driving many to consider other health care options.”
In mid-October, Connecticut’s congressional delegation wrote to Anthem and Hartford HealthCare expressing their concern for the patients and policyholders “affected by the ongoing impasse.”
They called the stalemate “disruptive and a disservice” to patients and customers.
