Insurance negotiation letter concerns patients one week before contracts end
Mar 27, 2025, 7:05 AM

A closeup of the insurance negotiation letter. (Photo courtesy of 成人X站 7)
(Photo courtesy of 成人X站 7)
The clock is ticking for 1.6 million people in Washington State to maintain access to their health care providers as they negotiate with their insurance company.
Providence Swedish and PacMed are in contract negotiations with Regence BlueShield for a contract that will expire on April 1, meaning providers in those 28 hospitals across the state will become out-of-network, costing patients up to 40% more in out-of-pocket costs. A legally required letter was sent from Regence to its members warning of the potential contract impasse.
鈥淚 was pretty shocked by that,鈥 said Andrea John-Smith, a client of Regence BlueShield who goes to a PacMed clinic. 鈥淭he scale is what really struck me.鈥
John-Smith understands it鈥檚 a required letter and a standard part of negotiations, but was still caught off guard by the wording of it, especially as the April 1 deadline is less than a week away.
鈥淚鈥檝e experienced what it鈥檚 like to have to start up and build a relationship with someone that doesn鈥檛 know you and what it takes, and the kind of trust that you need in order to have, you know, intimate conversations about your health. So it worries me,鈥 she said.
For Olivia Vigrabs, the letter created a slight panic. She鈥檚 pregnant, due at the end of May, and because of her high blood pressure and gestational diabetes, she has doctor appointments scheduled throughout her term.
鈥淚 have tons of doctor鈥檚 appointments almost every week, so getting those all scheduled in the first place has been stressful. Now, if they did drop it, I would have to reschedule all that stuff,鈥 Vigrabs said. 鈥淭he idea of having to repeat all this stuff and go to a new provider is just awful.鈥
The Washington State Office of the Insurance Commissioner says negotiations are common between health care providers and hospitals, and they鈥檙e often resolved before the contract expires.
鈥淭he vast majority of these times, these contract negotiations are resolved,鈥 said Aaron VanTuyl, a spokesperson with the Washington Office of the Insurance Commissioner.
Whether common or required, the tone of the letter struck both Vigrabs and John-Smith.
鈥淚t seems like a kind of underhanded bit of negotiation,鈥 Vigrabs said. 鈥淛ust wanting us to put the pressure on.鈥
Regence BlueShield says Providence Swedish canceled the contract, requiring the negotiations to take place. When asked, Providence Swedish did not deny that assertion.
鈥淲e continue to negotiate with Regence and believe that we can forge equitable contracts to avoid any disruption to their members鈥 ability to receive care at Providence Swedish hospitals and clinics,鈥 a Providence spokesperson said in a statement.
John-Smith says that when she鈥檚 reviewed her statements, what is paid to providers seems 鈥渁ctually really low.鈥 That, combined with how she says Regence has scaled back her coverage, makes her understand Providence Swedish鈥檚 call to renegotiate.
鈥淚鈥檓 always experiencing my insurance provider as a 鈥楴o. No, you can鈥檛 have what you need,鈥欌 John-Smith said. 鈥淢y providers are out there advocating and spending time they鈥檙e not compensated for, filling out appeals and things like that. So there鈥檚 definitely a sense of loyalty I have to the folks who鈥檝e actually tried to help me.鈥
A statement from Regence BlueShield says, 鈥淥ur premiums are based on what we expect care to cost. If providers demand more money, our members and customers will pay more, and as stewards of our members鈥 health care dollars, it is imperative we negotiate on their behalf.鈥
Statements from both Regence BlueShield and Providence Swedish say they are each working hard on an agreement before the April 1 deadline.