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The editor is John Ryan at email: perugazette@gmail.com. The Peru Gazette is a free community, education and information website. It is non-commercial and does not accept paid advertising.

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UVM Medical Network reaches agreement with UnitedHealthCare

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Today, we’re announcing an agreement that means the UVM Health Network will continue to provide in-network care to patients covered under UnitedHealthcare’s commercial insurance plans through December 31, 2023. Our commercial insurance contract with United had been scheduled to expire April 1. While this extension will put further financial pressure on our health system, our priority is to do whatever we can to minimize disruption for our patients – despite United’s unwillingness to negotiate a fair contract.

This extension is a positive development for 2,660 UnitedHealthcare commercial insurance subscribers and their families in Vermont and Northern New York: It gives them more time to identify alternative medical insurance coverage or health care options starting with their 2024 plan year. Based on our conversations with United, and in spite of our best efforts to reach a new agreement, we do not expect our health system to remain in-network for UnitedHealthcare commercial insurance plans in 2024.

More information related to the UVM Health Network and UnitedHealthcare, including details on which United plans aren’t affected by these developments, is available at UVMHealth.org/UnitedHealthcare. For information specific to insurance coverage, affected patients should contact UnitedHealthcare directly.

I’m hoping that the nine-month extension we’re announcing today eases some of the pressure on those covered by UnitedHealthcare commercial plans, and I apologize for the stress and anxiety this situation has caused in our communities. I also want to point out that this extension is happening only because we are carrying over UnitedHealthcare’s rates from Fiscal Year 2022, with no rate increase for our health system – despite intense inflationary pressures that have driven up our costs significantly. This is a scenario that’s playing out nationwide: Insurers like UnitedHealthcare are posting high profits, while hospitals and health systems like the UVM Health Network continue to struggle with rising expenses, insufficient revenues, increasing patient needs and a national workforce shortage.

It’s important to note that, as a safety net health care provider, the UVM Health Network will always provide emergency care to anyone who walks through the door regardless of what insurance they have or whether they have insurance at all. And I want to reiterate that our mission is to provide high-quality health care for everyone we serve. To meet that mission, we need to be able to negotiate reasonable, responsible insurer contracts that allow us to meet our patients’ needs, both now and in the future.

Thank you for your continued leadership and partnership.

Sincerely,

Sunny
Sunil “Sunny” Eappen, MD, MBA
President and CEO

University of Vermont Health Network, 462 Shelburne Road, Burlington, VT 05401
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