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In the second public contract impasse in a month’s time, Fairview Health Services says it might leave UnitedHealthcare’s commercial network next year, which would affect tens of thousands of people who get health insurance through their employers. The latest dust-up would prevent about 125,000 patients with employer-sponsored coverage from scheduling appointments with their M Health Fairview doctors beginning in January, according to a disclosure provided to the Minnesota Star Tribune. The public fight is distinct from the now-resolved contract impasse between the prominent health system and the nation’s largest health insurer over patients who have Medicare Advantage coverage. Fairview says it will start mailing letters early next week alerting patients to the possible insurance disruption. The health system says UnitedHealthcare’s payment rates over the past five years have not kept pace with Fairview’s cost pressures from inflation, worker shortages and the COVID-19 pandemic. The insurer’s contract demands would force service cuts and limit access for patients, Fairview says, while adding layers of administrative complexity that delay or deny payment for medically necessary care. Eden Prairie-based UnitedHealthcare says Fairview is demanding a 23% price hike that would boost overall costs, delivering a financial blow to employers and workers. Twelve employers would see their costs increase by $1 million or more each, UnitedHealthcare says, arguing that Fairview’s price hikes would make it significantly more expensive than other health systems in the Twin Cities. Fairview said its proposed 23% increase would be spread across three years. Contract disputes between health insurers and providers over network terms have been growing in recent years, as insurance companies have seen diminished profitability while hospitals and clinics report continued financial stress.
