Huntsville Hospital terminates relationship with UnitedHealthcare

HUNTSVILLE — Citing a “difficult decision,” the Huntsville Hospital Health System said it has terminated its relationship with UnitedHealthcare.

The hospital system said it sent a notice of termination to insurance giant UnitedHealthcare. The decision impacts UHC’s commercial health insurance and Medicare Advantage plans but does not impact UHC’s VA managed care plan for veterans, Huntsville Hospital said in a statement.

“The decision was not made hastily, and we continue to pursue a resolution,” the statement said. “For more than a year, HH Health has been working toward a mutually beneficial contract with UnitedHealthcare.

“To date, HH’s efforts have not been met with the same level of care from the Fortune 500 company.”

Huntsville Hospital said UnitedHealthcare hasn’t paid the amount contractually owed from the current agreement.

“In fact, their denial rate on patient claims is 75% higher than other like insurers,” the statement said.

UHC, meanwhile, said it is committed to negotiating for an agreement and a “realistic and affordable” proposal.

“Huntsville Hospital Health System issued a notice to end our contract for its hospitals and is demanding an over 25% price hike in just one year, despite already being nearly 20% higher than the average cost of other hospitals in our network in northern Alabama,” UHC said in a statement. “We are committed to continued good-faith negotiation with the goal of reaching an agreement that ensures continued, uninterrupted network access to the health system’s hospitals.

“We urge Huntsville Hospital Health System to provide a proposal that’s realistic and affordable for Alabama families and employers.”

A UHC spokesperson said Huntsville Hospital Health System’s physicians are not impacted and “continue to remain in our network for commercial, Medicare Advantage and IFP members, regardless of the outcome of our negotiation.”

Patients who have UnitedHealthcare insurance may continue to use Huntsville Hospital Health System as an out-of-network hospital, the hospital said. There will be no impact on out-of-pocket expenses for retired educators (PEEHIP) or retired state employees (SEIB) or those whose coverage is with UHC Medicare.

Helen Keller Hospital in Sheffield and Red Bay Hospital will be the first hospital to leave the United network when their contract ends Oct. 15 and Highlands Medical Center in Scottsboro will leave Oct. 31.

Huntsville Hospital and Madison Hospital will become out-of-network hospitals effective Nov. 15 and Decatur Morgan Hospital would be out of network effective Dec. 1.