Salem, OR – Thousands of Regence insurance policyholders will soon experience a significant increase in out-of-pocket costs for care at Salem Health hospitals and clinics. Starting Wednesday, patients insured by Regence will be required to pay more for services at the local healthcare system’s facilities, following the breakdown of contract negotiations between the two organizations.
Regence, a leading health insurer in the region, confirmed the change in an announcement released this week. According to the insurer, the decision follows unsuccessful attempts to reach an agreement on reimbursement rates with Salem Health, which operates a network of hospitals, outpatient clinics, and other medical services in the Salem area.
As a result, policyholders seeking care at Salem Health facilities will no longer be able to access in-network benefits, and many will now face higher out-of-pocket costs. This includes higher co-pays, deductibles, and potentially higher rates for surgeries, emergency care, and other hospital services.
“We understand the impact this will have on our members,” said Regence in a statement. “We are committed to working with Salem Health to resolve the situation, but until an agreement is reached, patients should be aware that their costs for services at these facilities will increase.”
The dispute centers on the rates Regence is willing to pay Salem Health for care provided to its policyholders. While details of the negotiation remain confidential, both parties have expressed disappointment over the failure to reach a new contract, with Salem Health emphasizing that they are unable to accept Regence’s proposed reimbursement rates, which they deem unsustainable for providing high-quality care.
For many patients, this shift will mean navigating complex decisions about where to receive care. Some may seek alternatives at other hospitals or outpatient centers that are still in-network with Regence, while others may face the decision of paying higher costs to remain with Salem Health, which is one of the largest providers in the region.
Regence has advised its members to review their benefits and plan options, suggesting they explore alternative care options if necessary. The insurer also encouraged patients to contact customer service for clarification on how the changes will affect their specific coverage.
Salem Health, for its part, remains committed to serving the community, though it did not provide specific details on how this change would affect its operations or patient care. “We continue to prioritize the health and well-being of our patients and will do everything we can to ensure they receive the care they need,” a spokesperson for Salem Health said.
As the situation continues to develop, many patients are left with uncertainty. Those affected are urged to stay informed about their healthcare coverage and seek assistance from both Regence and Salem Health to fully understand how the changes might impact their care and costs moving forward.
