The AWC Employee Benefit Trust supports Regence’s efforts to contain costs and provide reasonable claims payment increases.
Background
In October 2022, the owner of The Polyclinic and The Everett Clinic, Optum (United Health Group), sent notification that they would end their contract with Regence, effective December 5, 2022, for Medicare members, and December 19, 2022, for commercial
members, after insisting on unprecedented double digit increases in reimbursement rates.
Regence has had very little network disruption in their history. The AWC Employee Benefit Trust’s healthcare premiums are based on what we expect care to cost. We know families and employers are also facing financial challenges with inflation and
cannot afford the premium increases that would result from meeting Optum’s demands. Regence feels they have offered a reasonable increase to Optum, but as of today, it has not been accepted. They will continue in good faith to reach an agreement
that is in our membership’s best interest. Both parties are committed to reaching a mutually agreeable contract.
Late on December 18, 2022, the provider contracts with The Everett Clinic and The Polyclinic were extended through December 23, 2022, (except for MedAdvantage members).
Regence members receiving services on or after December 24, 2022, will be paid by the plan at the out-of-network rate. All parties are still negotiating to reach a long-term contract agreement for commercial and MedAdvantage plan members.
Update
On December 22, 2022, Regence reached a multi-year agreement with The Everett Clinic and The Polyclinic (MedAdvantage contract is still being negotiated). Regence will send updated letters notifying Regence members of the contract agreement and the continued
in-network status of these facilities.
Additional questions?
Please contact your AWC Trust staff at 1-800-562-8981 or benefitinfo@awcnet.org.