IBJNews

Contract between UnitedHealthcare, IU Health to expire

Back to TopCommentsE-mailPrintBookmark and Share

Indiana University Health and UnitedHealthcare will enter the New Year without a contract.

That would normally mean that UnitedHealthcare’s customers would pay higher prices at IU Health’s hospitals and physician offices.

But IU Health has decided to still give patients the same "in network" co-pays and deductibles that UnitedHealthcare had negotiated under the expiring contracts, keeping patients’ costs the same until a new deal is reached.

IU Health said in a press release it would apply the "in network" discounts only to the patient portions of its bills, not to the portions paid by UnitedHealthcare.

“We know patients value the relationship with their physician and health care team, and we want to help them maintain those relationships without unnecessary disruption,” said Dr. John Kohne, chief medical officer at IU Health, in a prepared statement.

UnitedHealthcare first notified its customers on Dec. 2 that its contracts with IU Health could expire at year end. Such contracts typically shave 30 percent or more off the list prices of a hospital system’s services.

The contract dispute could affect the roughly 400,000 Hoosiers that have employer-based or individually purchased insurance with UnitedHealthcare. That represents about 12 percent of the Indiana commercial market, according to data from Tennessee-based market research firm HealthLeaders-InterStudy.

It’s unclear how many UnitedHealthcare customers are IU Health patients. The biggest impact would likely occur in Lafayette, where UnitedHealthcare claims market share of about 27 percent and where the IU Health Arnett hospital has a major presence.

In the Indianapolis area, where there are roughly 1 million commercially insured customers, UnitedHealthcare’s market share is about 12 percent, or roughly 120,000 members, according to the HealthLeaders-InterStudy data.

IU Health operates 20 hospitals and employs nearly 1,500 physicians around Indiana.

ADVERTISEMENT

  • IU
    Eventually, IU is going to isolate themselves from Hoosiers. These network disputes are all over money. The insurance companies want deeper discounts. There are other issue that impact these negotiations. We just don't see any transparency from the hospitals in Indiana as consumers. Every try calling and asking what procedure cost?
  • So what IU?
    You will give discount but if UHC applies to my out of network deductible I will still have to meet my in network deductible. Stop spending money like the government. Bring down your costs and lower your rates. Close IU Saxony for a start!

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

ADVERTISEMENT