Legislators: UPMC Using Seniors as Pawns in Fight vs. Highmark

HARRISBURG, April 9, 2015 – A bipartisan group of state legislators from western Pennsylvania released the following statement today in response to the announcement that UPMC does not intend to renew the Medicare Advantage contract with Highmark customers:

“UPMC has broken its promise to seniors in western Pennsylvania. They made a promise to our seniors, and now they are purposely using our seniors to create leverage against Highmark to gain an advantage in a financial dispute. Their actions are unconscionable. UPMC was warned by the Attorney General, Insurance Commissioner and Secretary of Health that such tactics would constitute a breach of the carefully crafted consent decree. They disregarded that finding and are now sticking it to our seniors. Totally unacceptable,” said Senate Democratic Leader Jay Costa, D-Allegheny.

Rep. Jim Christiana, R-Beaver, said, “It’s truly unfortunate that the devious scare tactics and anti-patient behavior continue, this time at the expense of some of our most vulnerable citizens. UPMC is now threatening to hold hundreds of thousands of Highmark Medicare Advantage customers as hostages just to gain some legal standing. Rest assured, we will be monitoring this developing issue and will support our seniors in any way we can.”

House Democratic Caucus Chairman Dan Frankel, D-Allegheny, said, “The communities that I represent are tired of being held hostage by the actions of UPMC, which continues to engage in practices that clearly call into question its profit-driven motives and its status as purely public charity. The cancellation of the Medicare Advantage contract threatens to leave 180,000 seniors without access to their health care providers. I am committed to working with my colleagues and Governor Wolf to finally bring much-needed clarity and certainty to this dispute.”

Sen. Randy Vulakovich, R-Allegheny, said, “UPMC should quickly move to reinstate this contract so that seniors in Western Pennsylvania are not placed in the middle of this ugly, ongoing dispute. This behavior is totally unacceptable and has gone on far too long, causing mass confusion amongst my constituents and shedding a negative light on the region in general.”

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MEDIA CONTACTS:

Rep. Frankel: Ben Turner
717-787-7895, bturner@pahouse.net

Sen. Costa: Stacey Witalec
717-772-2368, switalec@pasenate.com

Sen. Vulakovich: Melissa Farabaugh
717-787-6538, mfarabaugh@pasen.gov

Rep. Christiana: Abbey Haslam
717-260-6222, ahaslam@pahousegop.com

Costa Issues Statement on the UPMC-Highmark Agreement

Harrisburg – June 27, 2014 – State Sen. Jay Costa (D-Allegheny) released the following statement concerning the UPMC-Highmark transition agreement. The agreement specifies care options that will be available to health-care consumers in Western Pennsylvania beginning Jan. 1, 2015. The current contract between the two companies expires at the end of this year.

Costa’s statement is as follows:

“The UPMC-Highmark transition agreement provides a path forward for health-care consumers in the Pittsburgh area. The agreement does not go as far as I would have preferred, but there are positive aspects of the negotiated settlement that should be embraced by patients, doctors and communities throughout the region.

“While the agreement is not an extension of the UPMC-Highmark contract, it does preserve in-network access to specialty hospitals, emergency rooms and certain treatment facilities. It also addresses coverage for Medicare.

“Many of us have worked hard both in public discussions and private meetings to talk through approaches and forge an agreement. There were many different options and alternatives available, including a legislative approach favored by Sen. Vulakovich, Reps. Frankel and Christiana and me that would have resolved the disagreement once and for all.

“The UPMC-Highmark dispute has simmered too long. Now that the agreement has been reached, the stress and apprehension that too many health-care consumers have faced for too long can be relieved.”

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Costa Seeks Legislative Input in “Patients First” UPMC-Highmark Talks

Harrisburg – June 6, 2014 – Senate Democratic Leader Sen. Jay Costa (D-Allegheny) said today he has sent a letter to Gov. Tom Corbett asking for a meeting with lawmakers who have sought a resolution of the contract dispute between Highmark Inc. and UPMC.

Specifically, Sen. Costa said lawmakers want to meet with the governor’s “Patients First” team to ensure that unlimited access for patients to doctors and health-care facilities are part of the discussion.

The “Patients First” initiative, announced earlier this week, includes the state’s health and insurance commissioners who are to meet with managers at UPMC and Highmark to establish “clarity” about the health care access after Jan. 1, 2015.

In the letter, Costa said he is “troubled” that the governor’s team has met with UPMC and Highmark without legislative involvement and that the stated goal of the initiative is “clarity” rather than health care access for all.

“Meetings are important, and engagement and open dialogue are necessary, but the discussion must include in-network access to doctors and facilities for all if a patient has insurance,” Costa said. “The governor’s team should meet with lawmakers who have been actively seeking a long-term solution to the UPMC-Highmark impasse because we have plenty to offer.”

Costa and Sen. Randy Vulakovich (R-Allegheny) have sponsored Senate Bills 1247 and 1248, which would allow consumers access to hospitals and doctors regardless of the insurance they are carrying. Similar legislation has also been introduced in the House.

“No patient who has insurance should wonder whether they can see their doctor or be treated in a nearby hospital,” Costa said. “These are non-profits and there is a compelling interest in brokering an agreement that includes access for all, without restrictions.

“We have legislation drafted and introduced that will solve the problem without reservation and that proposed solution should be part of the talks.”

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View Sen. Costa’s Letter to Gov. Corbett →

Sen. Costa Statement on Highmark-UPMC Contract

HARRISBURG, May 2, 2012 — Senate Democratic Leader Jay Costa (D-Allegheny) today issued the following statement on the agreement between Highmark and UPMC:

“The extension of the contract between Highmark and UPMC is good news and it’s the right thing to do for all health care consumers in the Western Pennsylvania.  Many people have worked on this issue and worked toward this agreement.  It is good to know that these efforts were not in vain.

“For too long there have been too many questions and too much apprehension about where consumers would be able to turn for life-saving health care if this issue were not resolved.   Individuals, businesses, workers, seniors and so many others who are impacted can now be assured of access to high quality, low-cost health care for the near future.

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“By agreeing to provide access to health care facilities until 2015, the insurance and health care markets in Pittsburgh will have increased stability in a time of market adjustment.  This access period will allow time to negotiate an even longer agreement that benefits all health care consumers in the Pittsburgh area.

“The agreement provides the kind of protection that workers, families, businesses, seniors and communities deserve.  It is the type of arrangement that Sen. Don White and I – and all our colleagues from the region – envisioned when we drafted our legislation (SB 1358).

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“I want to personally commend the collective work of Gov. Corbett, Sen. Don White and members of his caucus, House leadership including Reps. Dermody and Turzai, lawmakers from Western Pennsylvania and especially my Senate Democratic colleagues who provided the strong support that was needed to work through the various problems and issues.

“I am pleased that we can put this issue aside and provide relief for all health care consumers served by both Highmark and UPMC.”

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Hearing Held on Highmark/UPMC Dispute

PITTSBURGH – September 13, 2011 -Senate Democratic Leader Jay Costa (D-Allegheny) joined members of the Senate Banking and Insurance Committee for a public hearing in Pittsburgh regarding the ongoing contract dispute between the University of Pittsburgh Medical Center (UPMC) and Highmark, Inc.

Sen. Costa speaks at Pittsburgh hearing regarding Highmark/UPMC dispute

Sen. Costa speaks at Pittsburgh hearing regarding Highmark/UPMC dispute

 

“It is unfathomable that UPMC and Highmark have yet to come to a compromise to settle their dispute,” Costa said.  “This impasse is creating a great deal of anxiety, and these negotiations should not center on the financial benefits seen by these huge non-profits, but on the continued health and well-being of Highmark customers that rely on UPMC hospitals and doctors.  The health of Pennsylvania residents and the availability of quality of health care is something we cannot afford to jeopardize.”

The 10-year reimbursement contract between Highmark and UPMC, which gives Highmark customers ‘in-network’ access to UPMC facilities, is due to expire next summer. A one-year ‘run-out’ period would follow the expiration.

Hearings are being held in an effort to gather information and determine whether or not there is any way in which the legislature can intervene to bring the current situation to an acceptable resolution.  

Costa also joined Democratic and Republican House Leaders in July, urging Highmark President/CEO Dr. Kenneth Melani and UPMC’s President and CEO Jeffrey Romoff to keep the public interest and accessibility to quality care as their top priority in working toward agreement. (Read a copy of the letter here)

Michael Consedine, Pennsylvania’s Insurance Commissioner, testified at Tuesday’s hearing and provided the following contact information for consumers who are seeking further information or assistance. (Read his testimony)

The website is www.insurance.pa.gov.
The toll-free hotline is 877-881-6388.

According to Secretary Consedine, the agency will soon have a unit dedicated solely to health questions, and they are also in the process of creating a webpage devoted to clarifying the UPMC/Highmark contract dispute.