UnitedHealthcare’s good-faith efforts to reach a deal with Montefiore
We continue to work hard to reach an agreement with Montefiore Health System that would restore network access for our members while also making health care more affordable for New Yorkers.
On May 28, 2021, we delivered a new five-year proposal to Montefiore that would provide the health system with a $184 million increase over the next five years compared to Montefiore’s 2020 reimbursement rates, which were already the highest of any health system in New York City. Our latest offer also matched the rate increases Montefiore was seeking in the first year of its most recent proposal.
While the rate increases we proposed are significantly more than the market demands and exceed the most recent monthly Consumer Price Index for All Medical Care, we delivered this proposal in the spirit of compromise and to end the disruption the community has experienced.
Montefiore’s refusal to negotiate in good faith
On June 4th, Montefiore provided us a counterproposal to our latest offer. However, Montefiore’s proposal maintained the same egregious price hikes it has demanded throughout our negotiation, only reducing its previous rate demands by 0.25% in just year four of the deal. The rate increases for the other four years remained the same compared to the health system’s proposal received on April 15, 2021. This change equated to a nominal $2 million reduction from Montefiore’s previous offer.
Montefiore continues to seek annual rate increases in excess of 7% over five years, which equates to 43% over the five-year period as these annual increases compound. Agreeing to Montefiore’s latest proposal would drive up health care costs by $433 million over the next five years, which is not affordable for the people and employers we serve.
Based on the history of Montefiore’s proposals, it has become apparent that the health system has no interest in negotiating in good faith or making health care affordable for New York residents and employers.
As is illustrated above, only one side has compromised in this negotiation. While we’ve been focused on getting a deal done and ending the disruption the market has experienced, Montefiore continues to repeat its same demands for egregious price hikes while spreading misleading information to the market.
We recognize that this has been a challenging process for our members and the employer group customers we’re honored to serve, and we do not take this type of disruption in the market lightly. We ask that Montefiore either work with us to finalize our latest offer or come to the negotiating table with a realistic proposal that’s affordable and sustainable for the people and employer group customers we serve.