Oct 25, 2022
- Large Group
- Small Group
- Individual
Important update on provider negotiations in Indiana
Thank you for your continuing partnership as we work to address the cost of healthcare in Indiana.
During this period of rising inflation, consumers are understandably concerned about healthcare affordability. Anthem Blue Cross and Blue Shield is sensitive to those concerns.
We are currently in contract negotiations with Lutheran Health Network, which operates several hospitals in Allen and surrounding counties. As these negotiations continue, we want you to be equipped with the facts. This letter is intended to explain the situation and the points of contention in this negotiation.
First, Anthem members continue to have access to care from Lutheran Health facilities as the current contract remains in effect until December 31, 2022, and we are committed to negotiating in good faith to reach a long-term agreement.
The driving issue in this negotiation is the cost of healthcare. Hospital costs in Indiana are the 7th highest in the nation. And Lutheran Health Network is a high-cost system in a high-cost state. Yet they are asking Anthem and its customers to pay more. Without a renegotiated contract, the reimbursement to Lutheran facilities is on pace to be more than three times what Medicare would pay for the same services.
There is sufficient time to reach a mutually beneficial agreement by the end of the year. Again, there is no impact at this time on our members’ ability to seek in-network care at Lutheran facilities. We have been meeting regularly with Lutheran officials and will continue to do so until a new contract is reached.
Thank you for placing your trust in Anthem Blue Cross and Blue Shield. We will continue to do what’s right for our customers, working on your behalf to reach an agreement that provides access to more affordable healthcare for Indiana employers and healthcare consumers.