Jefferson Health Executive Vice President Mark Whalen said LVHN has been trying to negotiate with the insurance provider for more than 2 years
Lehigh Valley Health Network is dropping UnitedHealthcare insurance plans, which could mean higher out-of-pocket costs for policyholders next year.
The move could affect more than 70,000 patients of LVHN, according to The Morning Call.
Lehigh Valley Health Network is a subsidiary of Jefferson Health, which oversees Jefferson Health Lansdale, Jefferson Health Abington and Jefferson Einstein Montgomery Hospital.
Jefferson Health has separate contracts with UnitedHealthcare that will remain in effect, per the report.
According to the report, UnitedHealthcare believes the health system using clientele as “leverage,” but Jefferson Health Executive Vice President and Enterprise Chief Strategy and Transformation Officer Mark Whalen said LVHN has been trying to negotiate with the insurance company for more than two years unsuccessfully.
“Sustainable, fair payment is essential to maintaining access and quality for the communities we serve. When reimbursement falls substantially below negotiated levels, it threatens our ability to fulfill our mission of providing exceptional care to all patients,” Whelan said in a statement to The Morning Call.
Contracts will end Jan. 25, 2026 for patients with Medicare Advantage plans and April 25, 2026 for patients with commercial policies.
UnitedHealthcare told the newspaper that LVHN's last contract proposal was in December 2024, with a 30% rate hike in its first year.
“Lehigh Valley is making misleading and potentially false public statements about the status of our relationship in the middle of the Medicare Annual Enrollment period presumably as a negotiating tactic,” UnitedHealthcare said in a statement.
According to the report, in November 2022, LVHN threatened to stop accepting Aetna plans for what it said was refusal to pay for health care provided to members and denying or delaying care.