District told LCMC talks remain active as staff prepares targeted notices for affected members

USI/UMR representatives told the board that contract negotiations with LCMC Health were continuing and that both parties remained at the table as they sought a compromise on reimbursement rates. Presenters said the LCMC proposal under discussion would raise market reimbursement levels materially and could increase overall market health care costs if accepted as proposed.

Staff said a contract in the market at the proposed level would raise costs for self‑funded employers; because negotiations could affect members with planned care (including pregnancies and scheduled procedures), the district has prepared targeted member letters and will publish guidance in the next employee newsletter. Presenters said about 400 members had used an LCMC hospital in the previous 12 months and that the contract being discussed applies to hospital facilities rather than affiliated physicians; continuity‑of‑care protections for certain scheduled services were noted as part of member outreach.

Why it matters: A contract change that removes or changes in‑network status for a major hospital system can increase members’ out‑of‑pocket costs and, for a self‑insured employer, can shift material claim costs back into the plan. Board members asked that staff provide clear guidance to employees with scheduled procedures and that targeted communications be mailed and emailed quickly so members have time to plan alternatives.

What staff will do next: USI/UMR said they would continue negotiating with LCMC and report back; district HR/benefits staff committed to distribute targeted letters to impacted members and to include a clear FAQ and steps to take if a scheduled hospitalization would be affected.

Provenance: Board presentation by USI/UMR presenters during the health claims session; no formal action was taken at the meeting.