Friday is the last day for Northern Light Health to reach an agreement with Maine’s largest health insurer after the organizations extended their contract deadline by one month.
If the health care system fails to come to an agreement with Anthem Blue Cross Blue Shield before Saturday, Nov. 1, Northern Light care will become out-of-network for people with Anthem insurance.
The contract between the two organizations briefly expired at the end of September before they decided to temporarily extend their previous contract to allow negotiations to continue.
If no agreement is reached, more than 30,000 Northern Light patients would move out of network. For many communities across northern and eastern Maine, Northern Light is the major caregiver and the decision could mean many Mainers traveling farther for health services.
If that happens, Northern Light hospital services will still stay in-network with Anthem plans through Dec. 31. All Northern Light hospitals and physicians will remain in-network for Anthem Medicare Advantage plans through Dec. 31.
Click here to see how you could be affected if the organizations fail to reach a deal.
The contract extension will expire just before Maine’s health insurance open enrollment period opens Nov. 1. If the two parties don’t come to an agreement, many Mainers may consider switching insurance or looking for new health care providers.
It also comes as the University of Maine system makes plans to switch to Anthem health insurance for its employees — a move that unions representing those employees said was concerning.
Negotiations over the contract have dragged on for months, growing increasingly messy and public. Anthem wants Northern Light to lower proposed rate increases, the insurer has said. Northern Light, on the other hand, has argued that higher reimbursement rates are necessary for a fair contract.
Spokespeople for both parties decline to comment Thursday on the ongoing negotiations.
The dispute is playing out as the health care system, one of the largest in Maine, tries to recover from a $156 million loss last year and an array of recent setbacks, including hospital closures and downgrades in its credit rating. Guy Hudson stepped in earlier this month as the organization’s newest president, saying he wants to build on progress towards financial stability.
