Northern Light Health announced Tuesday that it is seeking to enter mediation with Anthem Blue Cross Blue Shield, the state’s largest insurer.
On Friday, Aug. 15, the health care provider announced that it had ended contract negotiations with Anthem. Starting Oct. 1, Northern Light services would be out of network for people insured by Anthem, if mediation does not provide steps toward a new contract.
Mediation allows companies and businesses to seek a neutral third party to oversee negotiations.
“We cannot predict whether mediation will be successful should Anthem agree to this process, but it is the right thing to do as we continue to prioritize the best possible outcome for our patients,” said James Rohrbaugh, Northern Light’s Chief Financial Officer. “We hope that Anthem will agree to mediation.”
Contract talks between Brewer-based Northern Light, one of the largest health care providers in Maine, and Anthem have been messy and public in recent months with each accusing the other of jeopardizing the relationship at the expense of patients.
Recently, Northern Light said its contract with Anthem would expire on Sept. 30 if the insurer didn’t agree to raise reimbursement rates.
Anthem has said Northern Light Health wanted a 30 percent price increase over three years.
Northern Light sent Anthem a counter offer July 30 as part of negotiations, and the insurance company said the week of Aug. 15 it would not return another offer in response, according to Rohrbaugh.
Anthem spokesperson Jim Turner said that the insurer reached out to Northern Light Health last Friday to initiate a conversation about bringing in a mediator to reach a new contract agreement.
“We are pleased that Northern Light is in agreement with Anthem about taking this next step in our negotiations,” Turner said in a Tuesday email.
BDN reporter Ethan Andrews contributed to this report.
