Association Health Plan Partner: Regence – Update on Legacy contract negotiations

March 15, 2024

Regence BlueCross BlueShield of Washington is one of our premium carrier partners, bringing affordable and comprehensive health coverage to small businesses in Washington through our unique Association Health Plan offering. Regence is part of a family of regional health plans that symbolize strength and stability in local communities for 100 years, connecting people and their families to health care when and where they need it most. Powered by the national strength and security of Blue Cross and Blue Shield, they strive to give you more control, providing superior service and making health care more transparent, more cost-effective, and focused on results that matter to you.

By Regence

March 09, 2024

On March 8, we submitted our best and final offer to the leaders of Legacy Health to continue serving our Medicare Advantage and Commercial members. It is now up to Legacy’s leadership whether its doctors and facilities will remain in network. If Legacy’s leadership decides it will no longer serve Regence members, Legacy doctors and facilities will be out of network on April 1, 2024. Reminder: This negotiation does not affect in-network access to Legacy providers or facilities for members of Regence’s Individual and Small Group Alliance and HPN Networks as noted below. 

Regence and Legacy have successfully partnered for many years to serve the people in our communities. This latest contract negotiation, however, has been disappointing. When we offered an agreement that would pay Legacy financial incentives to meet quality standards, they said no. When we met their request for Medicare reimbursement to settle the Medicare contract, they refused. And then they came back to us just last week demanding even more money to continue serving Regence members.  

Legacy’s ask would increase health care costs paid to them by Regence and its customers by $41 million in just one year. Health care costs for an average large employer with Regence insurance would go up by more than a half million dollars.

Insurance premiums directly reflect the cost of health care. When providers and hospitals demand more money, consumers and businesses end up paying more for their insurance. As a tax-paying nonprofit, Regence spends roughly 85 cents of every premium dollar directly on member care.

We carefully manage our customers’ premium dollars so we can continue to pay the claims for health care services, like regular doctor visits, hospitalizations and prescription drugs.

We think all businesses should take responsibility for their results. Legacy took $171 million in taxpayer dollars in CARES Act funding. Our members and customers should not have to further shoulder the burden of shoring up Legacy’s balance sheet.

We will continue to negotiate in good faith. We hope Legacy’s leadership decides to continue conversations with a commitment to providing Regence members access to care at an affordable price.

We are ready to support members. If you have questions or need help, please call us at the number on the back of your member ID card. You can also sign in at regence.com to access your member account, search for in-network providers and more.