Florida Blue / Baptist Health Negotiations: What You Should Know

Tony Jenkins, Market President (Florida Blue)
Tony Jenkins, Market President (Florida Blue)

By Lynn Jones – Florida Blue is currently in negotiations with Baptist Health.  Negotiations have stalled due to setbacks concerning in-network rates, care and treatment.  Tony Jenkins, Market President spoke with the Free Press and answered the following questions for the community and Florida Blue insurance cards holders:

Can you explain the current situation with the Florida Blue/Baptist contract negotiations?

The deadline to reach a new agreement is September 30th and we are doing everything we can to try and reach a resolution that’s best for everyone. We are still under contract and members can still use their health plans. We are troubled that Baptist Health began contacting our members many weeks ago about all of this. We don’t want folks worried about scheduled appointments check-ups, annual visits, and surgeries that may possibly be canceled over the next few weeks. It is not just this that has us concerned, but also the excessive rate demands Baptist Health is making.  Please know our goal is to get Baptist Health to discuss a fair contract and keep access to affordable, in-network care without raising health care costs for our members.

How will these impact members in Jacksonville?

What Baptist Health is demanding is excessive. They want annual increase that add up to more than $1 billion in increased costs for the community over the next four years. That’s way above inflation and what is customary Negotiations with hospitals and physicians is a normal part of our business. This situation is different, as we typically reach agreements and members are not brought into the middle. We understand inflation is impacting individuals and businesses, including hospitals.

The contract that we are proposing to Baptist is fair and competitive and we’ve taken into consideration all that Baptist Health is facing from increased labor costs and other pressures. Other hospitals across Florida are facing these same pressures and we have reached fair deals with them.

What do you want people to know/understand better about the situation?

We want to make sure people understand that we are a mission-based not-for-profit that’s been around for 80 years and it’s our responsibility to serve our members. We’ve had a longstanding relationship with Baptist Health, want to keep them in our network, and what we are offering them is fair. Our members want to be able to continue seeing their Baptist Health care teams and preserving that is our goal. We just cannot agree to their excessive demands and the burden it would mean for Northeast Floridians.

How many people does this impact?

More than 50,000 of our members have used a Baptist Health facility in the last six months and tens of thousands more would lose access to theirs doctors and facilities if Baptist Health chooses to leave our network.  Also, Baptist leaders have indicated that they do not want to serve the 14,000 of our Florida Blue members with Health Insurance Marketplace-Affordable Care Act plans unless we agree to their demands.

These are our members, our friends, family, and neighbors and many of them struggle to make ends meet. While we have lots of quality doctors and hospitals in our area to serve our community, their decision to abandon so many in need is concerning.

Negotiations between hospitals and insurance companies happen all the time – what makes this one unique or why has it escalated?

Negotiating with hospitals and providers is a key part of what we do. This is a normal part of our business. What makes this different is the excessive demands that Baptist Health is making. They have refused to discuss reasonable terms.

We are still trying to negotiate in good faith.  We want to get to a place of a fair agreement and we’re still meeting with them. The challenge is when we propose terms, they do not come back with a counteroffer or want to discuss progress. That’s not a negotiation or a collaboration. We have to get back to the table to collaborate and negotiate for the citizens of Jacksonville.

Why have you been unable to reach an agreement so far, and what will happen if you do not reach an agreement.

We are proud to serve all 67 counties of Florida, and to be the state’s largest and oldest insurance company. We understand our members want to be able to continue seeing their Baptist doctors and preserving that is our goal. If we do not reach an agreement before October 1, or if there is a period when Baptist is out-of-network, we have plenty of strong providers and partners in our network across Jacksonville to serve the needs of our members with convenient, high-quality, and affordable care.

Back to the negotiation table:

We’re continuing to negotiate. Only problem we have is that Baptist is not responding with reasonable offers or rates.  It does not make sense given they are a mission-based and faith-based organization. We just want them to talk about reasonable terms that are in their best interest and protect our community, our members, and affordability.

We’re asking members to reach out with any questions or concerns, by calling the number on the back of their member ID card.

Health care is a serious, personal, and local issue. Jacksonville is our headquarters and where Florida Blue was founded 80 years ago, and we must continue to work to make sure high-quality health care is as affordable as possible and accessible to everyone.

Next steps:

We want the community to speak up and let Baptist leaders understand their concerns and urge them to negotiate in good faith. We’re all in this together.  Baptist has been our partner and the community for many years.  We want an agreement.  We just can’t accept these excessive rates that they are proposing.

Any questions comments, concerns visit:

https://www.floridablue.com/negotiation/baptisthealthjax

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