Lehigh Valley Health Network to Terminate UnitedHealthcare Contracts by 2026
Lehigh Valley Health Network (LVHN) is set to terminate its contracts with UnitedHealthcare, according to an announcement by Jefferson Health. This strategic decision arises due to ongoing disputes over reimbursement rates with the nation’s largest health insurer.
Contract Termination Dates
The current contracts between LVHN and UnitedHealthcare are set to expire on specific dates:
- Medicare Advantage patients: January 25, 2026
- Commercial insurance patients: April 25, 2026
Background of Negotiations
Dr. Edmund Pribitkin, chief physician executive at Jefferson Health, detailed the network’s frustrations during a video announcement. For over two years, LVHN has sought a fair relationship with UnitedHealthcare.
Pribitkin noted that UnitedHealthcare has consistently failed to pay the negotiated rates since 2021. This failure has resulted in reimbursement rates that are up to 40% below expectations. He emphasized the goal of establishing an equitable relationship to benefit patients and ensure high-quality care.
Impact on Patients
With the anticipated termination of contracts, thousands of patients could face increased out-of-pocket costs. LVHN operates 15 hospitals and numerous outpatient locations across ten Pennsylvania counties. The network aims to maintain access to services while addressing the ongoing challenges with UnitedHealthcare.
Response from UnitedHealthcare
A spokesperson for UnitedHealthcare accused LVHN and Jefferson Health of making misleading statements to the public. They argued that the health system has not engaged meaningfully in negotiations since a proposal was sent in April.
According to United, LVHN’s previous proposal in December for a nearly 30% price increase highlights the need for a cooperative approach to avoid driving up healthcare costs for patients.
Conclusion
The ongoing disputes between LVHN and UnitedHealthcare may lead to significant changes for thousands of patients. As both parties navigate this complex situation, the focus remains on achieving a resolution that ensures fair reimbursement and accessible healthcare for the community.
