Originally published August 7, 2007 at 12:00 AM | Page modified August 7, 2007 at 2:05 AM
Swedish severing ties to insurer
Swedish Medical Center said it will sever its contract with UnitedHealthcare, the nation's largest health insurer, this fall, a move that...
Seattle Times health reporter
Swedish Medical Center said it will sever its contract with UnitedHealthcare, the nation's largest health insurer, this fall, a move that could mean higher medical bills for 14,000 families.
Swedish's chief financial officer, Jeff Veilleux, said UnitedHealthcare pays Swedish less than any other commercial insurer and also scores the lowest for accuracy and promptness of payments and other measures.
Swedish has never terminated a contract with an insurer, although it came close to doing so with Aetna in 2001.
"It's a very serious event," Veilleux said. "It's not what we wanted to do."
Swedish began notifying employees and patients Monday that UnitedHealthcare's contract will expire Sept. 8 with 450 Swedish-employed physicians and on Oct. 8 for the four Swedish hospitals on First Hill and in the Central District, Ballard and Issaquah.
After those deadlines, Swedish will be an out-of-network provider for UnitedHealthcare members. That means UnitedHealthcare patients will likely have to pay higher co-pays and a larger share of their medical bills if they continue receiving care through Swedish and its doctors.
Tyler Mason, a spokesman for Minneapolis-based UnitedHealthcare, said the announcement was unexpected because the parties were in the middle of negotiations. Mason said contract disputes are not uncommon, but he said "99.6 percent" of UnitedHealthcare's hospitals renew.
"There is still time" to sign a new contract with Swedish, Mason said. But he said Swedish has asked for "double-digit" payment increases, which would raise premiums for UnitedHealthcare members.
"If we pay them more, our members have to pay more," Mason said.
Local employers who offer coverage through UnitedHealthcare include Wamu, Alaska Airlines, T-mobile, AT&T/Cingular and Wells Fargo. UnitedHealthcare accounts for 7 percent of Swedish's patients, Veilleux said.
One UnitedHealthcare patient, Trent Gillespie of Seattle, said his wife is due to give birth on Oct. 26 at Swedish's First Hill campus, which would be after the contract expires. But Swedish has notified the couple that their current coverage will continue until the baby's birth.
But Gillespie said he isn't reassured. On top of it all, he said that because his family doctor is employed by Swedish, he may have to find a new one unless he is willing to accept lower coverage.
"And I can't afford that," he said.
Kyung Song: 206-464-2423 or ksong@seattletimes.com
Copyright © 2007 The Seattle Times Company
UPDATE - 10:48 PM
Seattle and most other school measures passing
Seattle is first U.S. stop for Picasso exhibit
UPDATE - 10:47 PM
King County library measure ahead by slight margin
NEW - 10:16 PM
Medical pot exceeds law, but no charges
Seattle physician Brian Krabak will do more than treat injuries at Winter Olympics

nwautos
Associated Press Study: Fatal crashes down in Washington Last year Washington's roads were the scene of the fewest fatal crashes since 1955. According...
Post a comment
nwjobs
Post a comment
Michelle Goodman blogs about work/life balance.
Five reasons to stick with a job you hate -- for now
Post a comment
- Steve Kelley | My treatment of Bedard has been unfair
- Is Washington's tax exemption on bullion a gold mine?
- 747-8 soars smoothly on first outing
- Super Bowl ads: Betty White, Bud Light, big laughs
- Alaska Air dropping Jones Soda beverages, going back to Coca-Cola
- Man found shot dead in pickup truck in Seattle
- Sex, drug rumors swirl about N.Y. Gov. Paterson
- Lewis-McChord soldier charged with abusing 4-year-old over alphabet lesson
- Seattle is first U.S. stop for Picasso exhibit
- Husky Football Blog | Pac-10 expansion to get consideration over next year
- Republicans may be no-shows at health-plan summit
277 - Pac-10 expansion to get consideration over next year
249 - State Senate votes to clear way for tax increases
229 - Obama: GOP and Dems together can spur job growth
209 - Lee undergoes foot surgery
198 - Fort Lewis soldier charged with abusing 4-year-old, holding her head in water
193 - Rivals names Martin one of Pac-10's best recruiters
143 - Belltown boulevard could be completed by early next year
126 - White House mocks Sarah Palin from podium
86 - Tobacco ban in Seattle parks affirms citizen right to breathe smoke-free air
83
- Seattle is first U.S. stop for Picasso exhibit
- 747-8 soars smoothly on first outing
- City, Vulcan push higher South Lake Union height limits
- Commentary: Microsoft's creative destruction
- Snap out of your photo funk: How to make sense of all those piles of images
- Wine Adviser | Oregon's quality pinots join the bargain ranks
- Belltown boulevard could be completed by early next year
- Jerry Large | Learning not to copy China
- All You Can Eat | Portage chef Vuong Loc takes Cremant space in Madrona
- Rigorous college-prep classes skyrocketing in Washington state





