WINCHESTER, Va. (WDVM) — Anthem of Virginia and neighboring Blue Cross insurance plans may be considered out of network for Valley Health system next year. This comes after Valley Health decided not to renew their previous contract terms with Anthem.
Come January 1st, 2021 people who have Anthem Blue Cross and Blue Shield insurance may no longer be able to use their insurance to receive medical services from Valley Health. Insurance holders, now receiving a letter in the mail from Valley Health alerting them about the possible change.
The contract negotiation difficulty between Valley Health and Anthem stems from this question-where should the money from people’s insurance rates go? Valley Health wants a new contract with Anthem. According to them, a solution that would fairly compensate caregivers and the local care that Valley Health provides. Anthem, unwilling to agree to the rate increases.
In a statement released by Valley Health, President and CEO Mark Nantz says, “Anthem routinely raises its members’ premiums, and I’m sure many people assume they are passing that increase on to local doctors and hospitals. But it simply isn’t the case. As Anthem raises its premiums, they do not increase payments to healthcare providers at a comparable rate.”
Anthem’s response to the situation, “While we would like to keep Valley Health in our care provider network, we cannot agree to the rate increases they are currently asking for, which would make healthcare costs in the Winchester area some of the highest in Virginia.”
In their statement to WDVM 25, Valley Health says Anthem has not proposed an alternative solution to protect the hospital system’s ability to adequately provide local care.