Home Erie News AG Shapiro, Governor Wolf Announce New 10-Year Contract between UPMC and Highmark

AG Shapiro, Governor Wolf Announce New 10-Year Contract between UPMC and Highmark

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Shapiro & Wolf
At the podium, PA Attorney General Josh Shapiro is joined by Governor Tom Wolf (r) for announcement of Highmark and UPMC contract, June 24, 2019. Screen grab of contributed video.

UPDATE: Highmark’s Jim Teed told TalkErie.com that they are excited at this development. “This is what Highmark has wanted and pushed for all along, and so we’re very excited that this deal has been done, and we’re excited about moving forward,” Teed said.

In a statement, UPMC said, “UPMC believes in the importance of informed consumer choice and has always sought to ensure that when UPMC is part of any insurance network, those members have full access to UPMC without contractual terms used to discourage or limit the use of UPMC’s physicians and facilities. This important consumer issue was resolved in a collaborative fashion and UPMC’s network will now be available to Highmark members. UPMC appreciates that we were able to reach this agreement with Highmark on a long-term, in-network contract.”

Original story:

PITTSBURGH — Attorney General Josh Shapiro and Governor Tom Wolf today announced UPMC and Highmark have agreed to enter into a 10-year contract that ends their longstanding dispute and ensures Highmark patients will have access to UPMC doctors and facilities. The contract will go into effect on July 1, the day after the expiration of the current consent decrees, ensuring that patients should not experience any disruption in their care. This is a global agreement as all UPMC hospitals are now an option for Highmark’s insured patients. This is the longest deal that UPMC has ever made with any insurer.

“I’m proud to announce this historic settlement today that restores fairness and access to affordable care for the people of Western Pennsylvania and reinjects real choice into the healthcare marketplace,” said Attorney General Josh Shapiro. “Without this agreement, millions of patients—including seniors, cancer patients, and working mothers—would have had their health care abruptly upended. Thanks to the patients who told their stories about what they stood to lose, Western Pennsylvanians now have their access to a fair healthcare system secured for the next decade.”

“Pennsylvanians deserve access to quality, affordable healthcare, and this agreement between UPMC and Highmark preserves that access for the people of Western Pennsylvania for the next ten years,” said Governor Tom Wolf. “I’m proud of the hard work of Attorney General Shapiro and his legal team to secure this victory for Western Pennsylvanians, and I’m glad my administration was able to support this work. I’m grateful to the many patients who stood up and advocated for their right to care.”

Attorney General Shapiro worked with UPMC and Highmark for two years to resolve the issue posed by the expiring consent decrees and to prevent further harm to the public. When negotiations failed to yield a result, Attorney General Shapiro filed a petition in February 2019 against UPMC to modify the consent decrees. Before Commonwealth Court ruled on June 14th that the state could not modify those agreements, Attorney General Shapiro had already entered into rigorous negotiations with the leadership of UPMC and Highmark to reach this agreement.

“As Attorney General, I swore an oath of office to protect the rights of all Pennsylvanians,” said Attorney General Shapiro. “That means putting people before powerful institutions, and holding powerful institutions accountable to the people they serve. My Office will continue working tirelessly on behalf of all Pennsylvanians.

“The legal battle over the last several months has been complex, and my legal team has worked tirelessly. On behalf of a grateful Commonwealth, I want to thank them for their dedication, talent and countless hours of work. I would also like to thank the leadership of UPMC and Highmark, Governor Wolf and the many other elected officials who came together to help deliver this result for the people they serve.”