Aetna renews contract as UnitedHealth negotiations break down

In the latest contract-related battle between insurers and providers, UnitedHealth parted ways with the Eastern Connecticut Health Network (ECHN) while Aetna successfully renewed its partnership with the provider.

ECHN, which is the parent company of hospitals throughout 19 eastern Connecticut towns, said UnitedHealth has been providing inadequate reimbursements for services and didn't make any reasonable proposals during the contract negotiations, the Hartford Business Journal reports.

However, UnitedHealth said ECHN asked for more than a 250 percent rate increase for many services. If the insurer agreed to ECHN's terms, the cost of baby deliveries would increase from $3,500 to $8,840 and emergency room visits would increase from $480 to $1,252, reports the Hartford Courant.

Although the two couldn't reach a deal, UnitedHealth spokesman Daryl Richard said the insurer is currently discussing contract options with ECHN and is committed to establishing a new agreement.

Meanwhile, ECHN signed a multi-year contract with Aetna that allows Aetna's commercial and Medicare members to continue receiving covered inpatient and outpatient services at in-network rates, according to the Vernon Patch. In a clear reference to the failed contract talks with UnitedHealth, Michael Veillette, ECHN's senior vice president of finance and information services, said it's "refreshing to negotiate with a company that understands the financial obligations of healthcare providers and can agree to reasonable reimbursement rates that keeps quality healthcare east of the river."

To learn more:
- read the Hartford Courant article
- see the Vernon Patch article
- check out the Hartford Business Journal article

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