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A lingering contract dispute between the state鈥檚 largest health care system听and its biggest insurance carrier is threatening to disrupt the health coverage that hundreds of thousands of Marylanders rely on 鈥� and Gov. Larry Hogan (R) is urging the two sides to resolve their differences as quickly as possible.
The dispute centers around the reimbursement rates Johns Hopkins receives for care provided by thousands of its doctors, nurses and other health care professionals. Hospitalization services are covered under a separate agreement.
The two companies continue to negotiate and both have expressed optimism that they can reach a new agreement before the current pact expires. But last month 鈥� amid ongoing discussions 鈥� Hopkins notified its nearly 300,000 CareFirst BlueCross BlueShield patients that it intends to leave the insurer鈥檚 network effective Dec. 5.
Hospital officials said they issued the notice, on Sept. 6, to give the public time to prepare. The existing agreement between Hopkins and CareFirst requires the hospital to provide 90 days鈥� notice听before leaving the network.
鈥淥ur patients are our top priority,鈥� Hopkins said in a statement. 鈥淲e are doing everything we can to come to a resolution with CareFirst, including meeting with them regularly 鈥� sometimes multiple times per week.鈥�
鈥淲e are hopeful that we will reach a fair solution before the December 5 deadline,鈥� the statement added.
CareFirst officials called the Hopkins move unnecessary.
鈥淲e regret Johns Hopkins鈥� decision to terminate our existing contracts and do not agree it was necessary to put the people we collectively serve in the middle of an ongoing negotiation,鈥� the carrier said听.
In a statement to Maryland Matters, CareFirst said it is 鈥渁dvocating for reasonable compensation terms that set a foundation for affordable, accessible healthcare in our shared communities.鈥�
鈥淐areFirst and Johns Hopkins continue to negotiate in good faith, meeting regularly to work towards resolution,鈥� CareFirst added in the statement.
If no agreement is reached, CareFirst customers could be forced to pay more for care or go elsewhere, a situation that likely would have the most impact on patients who are already being treated for an illness.
Hogan told reporters on Friday that he is 鈥渧ery aware鈥� and 鈥渧ery concerned鈥� about the lingering dispute, particularly since 鈥渙pen season鈥� for state employees to make health care decisions for 2023 is underway. Hogan said 鈥渕ost鈥� state employees receive their health insurance through CareFirst.
鈥淚 think it鈥檚 very unfortunate that we have two companies, both CareFirst and Johns Hopkins, fighting with one another,鈥� the governor said. 鈥淚 know that there听are ongoing negotiations. And we鈥檙e going to put as much pressure on them as possible to reach an agreement鈥︹��
Hogan said the state doesn鈥檛 have a formal role to play in resolving the dispute, but given the prominent position the two companies play, 鈥渉undreds of thousands of Marylanders鈥� insurance can鈥檛 be in a tug of war between Johns Hopkins and CareFirst.鈥�
The governor gave no indication what issues are driving the apparent stalemate, and neither did the two companies. But in a video, Johns Hopkins Health System President Kevin Sowers made it clear that the hospital is seeking more for the services its personnel provide.
鈥淭he increase that we are requesting is critical and goes to support your physicians, your nurses and the care-teams around them,鈥� he said. 鈥淚 believe that CareFirst wants to do what鈥檚 right for the health of our community and that we will be able to reach a fair agreement鈥�.鈥�
Sowers sought to assure patients covered by CareFirst, saying 鈥渘othing has changed yet鈥�.鈥�
Gene Ransom, head of MedChi, the Maryland State Medical Society, said the doctors his organization represents have encountered great difficulty negotiating with CareFirst, because of its market share.
鈥淐areFirst has incredible market power, and it puts people negotiating in a very difficult situation,鈥� he said. 鈥淚f Johns Hopkins physicians, which is one of the largest physician groups in the state of Maryland, can鈥檛 negotiate fair rates, how can anybody.鈥�
In听, Ransom argued that Maryland suffers from a lack of competition in the health care marketplace.
