UnitedHealthcare to ECHN: Statements Are Accurate

In a rebuttal to statements made by the top executive of Eastern Connecticut Health Network on Tuesday, a UnitedHealthcare spokeswoman said the insurer wants a new fee agreement in place by Oct. 15 and any statements rendered during the contract dispute with ECHN were not intended to mislead the public.

"We stand by the facts that we have presented,'' UnitedHealthcare spokeswoman Anayo Afolabi said Wednesday in an e-mail. "We are committed to securing a new contract in advance of the Oct. 15 deadline to avoid any disruption to our members."

Though he did not cite anything specific, ECHN President and CEO Peter J. Karl on Tuesday disputed the accuracy of public statements made by representatives of UnitedHealthcare during the stalemate.

"Because of the deliberate misrepresentations made by United to the media, it is critical for us to correct the record," Karl said. "United’s comments paint an incomplete, inaccurate and misleading picture of our ongoing rate negotiations and ECHN’s pricing. We are seeking fair and reasonable reimbursement levels from United that will allow us to provide quality care at rates that are not substantially and unfairly below market price."

He said his company, which runs hospitals in Vernon and Manchester, many smaller health care complexes in the area and a nursing facility in Tolland, is committed to getting a "fair and reasonable'' rate settlement.

An ECHN news release issued last week said if a new rate agreement is not in place when the current contracrt expires on Oct. 15, certain commercial accounts with UnitedHealthcare will be closed.Commercial accounts are at the core of UnitedHealthcare's business and Afolabi said ECHN has set the bar too high."

It is important to note, the majority of our members who visit ECHN are part of health plans that are underwritten by their employers," Afolabi said. "Large and mid-size employers often underwrite their own medical costs and rely on insurance companies for administrative services. If we agree to these high fees, many local employers will pay a higher amount directly to the hospital. Local employers have asked us to negotiate on their behalf to contain medical costs as these high fees can pose a burden and put local businesses at a competitive disadvantage.

"Our focus is on offering reasonable rates that will not put an unnecessary cost burden on consumers during these difficult economic times."

She said the two sides just cannot get to a productive bargaining session.

"We recognize ECHN's need to remain competitive. This is why we made multiple attempts to engage the hospital asking them to negotiate rates," Afolabi said. "Eastern Connecticut Health Network failed to act upon their right to come to the table to negotiate rate increases during the past two renewal terms, which encompassed a four-year span."

Afolabi said negotiations involve UnitedHealthcare and Oxford commercial plans. Emergency care is always covered and Medicare and Medicaid plans are not impacted by the stalemate, she said.

"In the event that we do not reach an agreement, members are reminded that in the event of an emergency, they should go to the nearest hospital regardless of network affiliation to the hospital,'' she said. "Emergency admissions will always be covered as an in-network benefit."