Anthem, St. Francis reach agreement in principle

August 29, 2009

The St. Francis hospital system has reached a tentative contract agreement with Anthem Blue Cross and Blue Shield of Indiana, ending a disagreement over insurance reimbursement costs, the parties said today.

Sisters of St. Francis Health Services Inc. originally asked for reimbursement increases that would have amounted to $80 million over three years, Rick Rhodes, an Anthem regional vice president, wrote in an Oct. 30 letter to employers covered by Anthem. The increase would mean $12 million more in out-of-pocket costs to Anthem customers. But St. Francis claims its request for an increase only brought it in line with what other hospitals are getting.

Details of the new "agreement in principle" were not immediately available, but the deal will maintain
in-network health care benefits for policyholders and employer groups throughout Indiana, according to a written statement that.


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