Blue Shield of California has responded to Sacramento, Calif.-based Sutter Health System's most recent offer concerning the tense contract dispute the two parties are involved in, according to a Sacramento Business Journal report.
The latest contract between Blue Shield and Sutter expired Dec. 31, 2014. Sutter officials say the contract disagreement stems from Blue Shield's proposal to lower payments for health services. However, Blue Shield of California President and CEO Paul Markovich said Sutter charges 18 percent to 30 percent more for its services than other providers, and Blue Shield cannot continue paying its current level and increasing reimbursement.
Earlier this week, Sutter proposed a deal that would let Blue Shield members keep their Sutter physicians until the end of 2015. In its counter offer, Blue Shield said it wants the members to be able to keep their Sutter physicians through 2016 "under terms in place from 2012 through 2014, except for changes required by law and a limit on inflation adjustments," according to the report.
The contract dispute affects approximately 280,000 people. Earlier this week, Blue Shield began notifying customers to be prepared to find providers outside of Sutter.
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