Highmark, UPMC reach new deal
The dispute between UPMC and Highmark finally appears to be over.
The health care providers signed a 10-year contract to begin when their existing consent order ends Sunday, according to a news conference held by Attorney General Josh Shapiro and a UPMC news release.
The new contract makes all UPMC medical facilities available to people with Highmark insurance coverage, Shapiro said.
The new agreement, as Shapiro described it, appears to formally resolve a substantial sticking point for Highmark customers as the two groups' split loomed at the end of June. Highmark insurance will be accepted at UPMC hospitals, including Children's and Western Psychiatric, without issues such as mandatory prepayment plans.
The deal came to fruition after a judge rejected an attempt by Shapiro earlier this month to extend the consent order currently in place. In the news conference, Gov. Tom Wolf said he doesn't think the deal would've happened without Shapiro's intervention.
“This new contract is between two parties, not the government,” Shapiro said.
The men said they believe it's the longest agreement UPMC has ever signed with an insurer.
“This is double what normally happens in these things,” Wolf said. “It's normally five years, and the attorney general was actually able to get them to agree to 10 years.”
At the news conference, Shapiro was pressed for information on how discussions went between the two groups, which for years were embroiled in a bitter feud. He offered little detail, but said UPMC officials approached him to start talks prior to the latest judge's decision.
The resulting talks, he said, were “honest, they were tough and they were productive.”
Last week, Butler Health System's CEO and President Ken DeFurio offered a calm take on the ongoing dispute. He said the looming split wouldn't affect BHS's patients.
DeFurio couldn't be reached Monday, but the hospital group's spokeswoman, Jana Panther, provided the following statement.
“Hopefully, this will eliminate the confusion regarding health insurance,” Panther said. “We are pleased to see both organizations reach an agreement that supports the right for patient choice.”
Following the decision, various politicians began issuing statements praising the deal.
The recently elected state Rep. Marci Mustello, R-11th, said the deal was “great news for families, seniors and veterans in our region who can now focus on their health, instead of worrying about their health care provider.”
Allegheny County state Rep. Mike Turzai, R-28th, provided a similar sentiment.
“With the June 30 consent decree expiration fast approaching, we were preparing legislation to address concerns with access to care at Children's Hospital,” Turzai said in a statement. “We are glad that UPMC and Highmark will continue to foster competitive insurance rates.”
U.S. Sen. Bob Casey, D-Pa., said, “I have long advocated for a result that would put people first and I am pleased that families in Western Pennsylvania will now have the stability and peace of mind they deserve.”
