Humana, Tenet cut ties over contract dispute
Insurer said it is still trying to negotiate a new contract with the major public hospital operator.
Humana's Louisville headquarters.
Tenet Healthcare and Humana have cut ties as the provider and insurer have failed to come to an agreement on a contract, Humana confirmed Friday.
"Humana is still in negotiation with Tenet on a new contract, but so far Tenet has not agreed to terms that are fair and reasonable for our health plan members and customers," Humana spokesman Mitch Lubitz said in an e-mailed statement from the insurer.
Effective Oct 1., our healthcare facilities and employed physicians are out of network with Humana. Despite our repeated efforts to reach a new agreement, Humana made it clear they would rather compromise their members' access to our providers and hospitals rather than work together to complete a contract. The effects of Humana's inaction are far reaching and mean many seniors and military families who are covered by Humana's Medicare Advantage and TRICARE plans no longer have in-network access to their trusted doctors and preferred hospitals.
Tenet said by email that it notified Humana back in July that it would not renew the agreement under the existing terms.
"We also sought to negotiate specific transition provisions that would go into effect in the event the pending merger with Aetna and Humana is finalized," Tenet said.
Tenet agreed to accept Humana's Medicare Advantage and exchange proposals, which cover a significant number of Humana's members, the Dallas-based healthcare provider said. But Humana refused to finalize the agreement without also having a contract on the traditional employer sponsored products.
"Humana's most recent proposal was significantly worse than their previous offer, making it even harder to get a new contract done," Tenet said. "We remain open to discussions with Humana should they commit to completing a new contract that provides fair and sustainable terms."
[Also: Humana, Cigna star ratings fall, dragging down stocks for merger partners]
For its part, Humana said it tried to keep Tenet as a preferred medical care provider in its network.
"Tenet unilaterally terminated its agreement with Humana for Medicare Advantage, commercial, Medicaid, individual major medical plans offered through the public exchange and TRICARE product offerings as of Sept. 30, 2016," Lubitz said. "At Humana, we strive to provide access to a wide range of health care facilities, but at the same time, we must ensure that our contracted facilities provide quality, cost-effective care, to keep health coverage and out-of-pocket costs as affordable as possible for our health plan members."
Twitter: @HC_Finance
