Memorial Healthcare is now out of network for about 31,000 Florida Blue members in Broward County after the hospital system and insurer failed to reach a new contract by a Monday deadline.
Florida Blue customers must pay higher rates for some services through Memorial's hospitals, urgent care centers, specialty facilities and affiliated physicians.
The split affects Florida Blue's employer-sponsored plans, Affordable Care Act marketplace coverage, Medicare Advantage, and members of other Blue Cross Blue Shield plans, including Anthem and Elevance.
Emergency care will remain covered under federal law, and patients who are pregnant or undergoing active treatment may qualify for temporary in-network continuity of care.
READ MORE: Florida Blue and Broward Health at an impasse as contract deadline approaches
Throughout the negotiations, Memorial stressed a commitment to remaining in-network but said it desired "fair reimbursement" from Florida Blue. The insurer said it offered "market-based increases" consistent with other regional hospitals, but that Memorial was demanding "an excessive rate increase that far exceeds inflation."
"We have worked tireilessly to finalize a new agreement that benefits Memorial while protecting our members and customers from rising medical costs," David Wagner, the insurer's South Florida market president, in a post on LinkedIn.
In response, Memorial, a public, nonproft system, issued a statement that said: "While Florida Blue continues to raise premiums for patients, their proposals do not equitably reflect the cost of providing high-quality, complex care, which could impact Memorial's ability to continue to invest in our community. On average, Memorial reinvests more than $900 million each year back into our community through charitable work, medical education, and covering insurance shortfalls."
This marks the second major contract impasse between Florida Blue and a South Florida public hospital system this summer. About 17,000 Florida Blue members have been out of network at Broward Health since July 1.
Shane Strum is the CEO for both Memorial and Broward health systems.
"It's unfortunate that the same executives who took Broward Health out-of-network with Florida Blue are now ready to do the same with the other safety net health system in Broward County, Memorial Healthcare System," Wagner's statement said.
"We are disappointed that the executives see cutting off in-network access to two major health care providers as what is best for the community."
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