Aetna drops Providence in Oregon from its health insurance network, leaving patients in limbo

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Providence Health & Services in Oregon has been dropped from Aetna’s health insurance network after the two sides failed to reach a new agreement by the end of 2024.

Providence’s contract with Aetna expired Dec. 31, both the not-for-profit Catholic health system and insurance giant said.

That means patients of Providence hospitals, clinics and doctors who are insured with Aetna’s employer-based and Medicare Advantage plans will now have to pay steep out-of-network fees — driving up their out-of-pocket costs — or seek care from a different provider.

Providence said about 9,000 patients with Aetna plans across Oregon would be impacted.

“While our discussions continue, we have been unable to renew our network agreement because Providence is demanding unreasonable rate increases that would raise health plan costs for local employers and out-of-pocket costs for members,” Aetna said in a statement.

Providence, meanwhile, accused Aetna of refusing to shoulder its share of rising health care costs, saying that “other insurers have agreed to step up … but Aetna has not been willing to do so.”

While the impasse will impact customers in much of Oregon, Providence providers in Jackson and Josephine counties will stay in-network until Feb. 17, both Providence and Aetna said. The Renton, Washington-based health giant has yet to finalize a new deal with Aetna for its southern Oregon facilities, which have a separate contract with the insurance provider than Providence facilities elsewhere in the state.

The fallout comes even as Providence has moved their employees to plans administered by Aetna for 2025.

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