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UMR warns LCMC proposal could raise regional costs; district to notify 400 users
Summary
UMR reported ongoing negotiations with LCMC Health and said the most recent LCMC proposal could increase market costs by about $113 million, with roughly 400 district members having used LCMC hospitals in the past year; targeted notices to affected members were being mailed.
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UMR's account manager updated the board on contract talks with LCMC Health and the potential consequences for members if the parties fail to reach agreement.
"The last proposal that they delivered to us is still a little high and still a little far off. It would increase overall health care costs in the market by a $113,000,000," UMR's negotiator told the board. She said negotiations cover hospital facilities rather than affiliated physicians and that UMR has identified roughly 400 plan members who used an LCMC facility in the previous 12 months.
UMR and district staff said they were preparing targeted letters to impacted members and that communications would include continuity-of-care information and next steps in the event of a network disruption. Presenters emphasized they were still negotiating and hoped to avoid network interruptions, but they warned that an adverse settlement could shift substantial costs onto self-funded clients.
