Excellus and St. Joseph’s Health reach new deal, bringing to close a contentious contract season

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Syracuse, NY — Central New York’s largest health insurer reached a deal with St. Joseph’s Health late New Year’s Eve, bringing to a close the region’s last major insurance negotiation in a contentious year.

Excellus BlueCross BlueShield and St. Joe’s announced a deal around 10:30 p.m. Tuesday that will preserve in-network coverage for more than 35,000 patients.

“Excellus BlueCross BlueShield (Excellus BCBS) and St. Joseph’s Health have reached a multi-year contract agreement effective Jan. 1, 2025, that will keep St. Joseph’s Health in the Excellus BCBS provider network,” both sides announced in a joint news release.

Their announcement came on the heels of a deal between St. Joe’s parent, Trinity Health, and insurance giant Aetna, which announced their agreement shortly before 5 p.m.

Both insurers had contracts that were due to expire at midnight. Had no agreements been reached, patients with each insurance would have lost in-network benefits at St. Joseph’s Hospital Health Center, its physicians’ network and related facilities.

The flurry of activity will mean that patients with Excellus or Aetna will see no changes to in-network coverage at St. Joe’s going into the New Year.

The news also brings to a close a year in which disputes between insurers and providers seemed to make news like never before.

First, there was the nearly yearlong impasse between Excellus and urgent care provider WellNow that began Jan. 1, 2024 and ended in mid-November with a new contract.

Over the summer, the region’s largest primary care provider, FamilyCare Medical Group, warned 30,000 patients that it was at serious odds with Excellus. After much publicity, the two sides settled their differences Nov. 21 before any impact was felt by patients.

St. Joseph’s CEO Dr. Steven Hanks had warned that the health network was demanding steep rate hikes from Excellus during their negotiations. The two sides had appeared ready for a lengthy battle, extending their old contract, if needed, until the end of February.

St. Joe’s faced a similar standoff with Aetna, who also warned roughly 15,000 members of its difficulty in reaching a new contract.

Both of those disputes ended within hours Tuesday, sending the majority of Central New Yorkers into the New Year with no dramatic changes to in-network coverage among major insurers and providers.

Staff writer Douglass Dowty can be reached at [email protected] or (315) 470-6070.

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