MU Health Care says it has lowered its rate proposal amid Anthem contract dispute

Erika McGuire

COLUMBIA, Mo. (KMIZ)

Contract negotiations between MU Health Care and Anthem Blue Cross Blue Shield remain at a standstill.

MU Health Care Chief Operating Officer Tonya Jackson told ABC 17 News on Thursday that no future meetings are scheduled between the two sides.

MU Health Care has not been considered “in-network” for Anthem customer since April 1 after the two sides failed to meet an agreement.

The health system says it has lowered its proposal to a single-digit increase over three years compared to its original proposal of a 13% increase over three years. Anthem has said MU Health Care wanted a 39% increase.

Johnson said the exact number proposed by MU Health Care was not immediately available.

“We have come down considerably in our ask we’re just asking for parity with other medical centers we are not asking for 39%, we are not asking for 13% each year over three years we are asking in single digits each year over three years,” Johnson said.

According to Johnson, the standstill is about wanting to cover the increasing cost of care.

“We are waiting for a meaningful proposal from anthem at this point and time we continue to see proposal that offer 1-to-2% each year and cost of care that are rising by 7.3% each year that math doesn’t add up for us and it doesn’t add up for our patients being a sustainable source of health care for the future,” Johnson added.

Anthem disputed the figures from MU Health Care in a statement to ABC 17 News.

“The numbers MU Health care has shared are not accurate. Anthem proposed rate increases that exceed the Consumer Price Index (CPI) for each year of a three-year agreement–offers that are consistent with what other Missouri health systems have accepted. MU Health Care is asking for rate increases that are the highest we have seen from any health system-anywhere. We remain open to reasonable and fiscally responsible conversations with MU Health Care,” the statement says.

MU Health Care claims Anthem owes them more than $20 million in unpaid claims that are more than 90 days past due. Anthem however, disputes that. The company said in Missouri it pays 96% of claims in 14 days and 99% in 30 days.

According to MU Health Care the amount of unpaid claims continues to increase each day and it’s becoming an administrative burden.

Johnson said patients will not be impacted financially but could see a delay in getting a bill or care but it’s more an administrative burden.

MU Health Care says it has dedicated resources to managing its claims with Anthem and has had a team of 30 people whose main job is to process just Anthem claims.

That team has been in place since the contract with the insurance provider began, according to Johnson. MU Health Care has another group of 25 that handles claims from other insurance providers.

“We are stewards of our members’ and our employers’ dollars, and we take that responsibility serious. Ensuring they are accurately and appropriately billed for healthcare services is and always has been among the most import aspects of our work,” Anthem said in response to the claims.

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