Premera and MultiCare at odds in contract renewal: Spokane patients may lose coverage if deal not reached by June 1

If a deal is not reached by June 1, MultiCare patients may lose coverage to their doctor if they have Premera Blue Cross as their insurance.

The health system and health insurer's current agreement expires at the end of May. The companies are not close to a deal, according to Premera Vice President David Condon.

"MultiCare is asking for Seattle level pricing for our hospitals in Spokane and all over Eastern Washington," said Condon, former Spokane mayor. "That is a nonstarter for Eastern Washington employers and members. Here in Spokane our cost of living is some 30% lower than that in the Seattle area. Our members can't afford Seattle price for care."

According to Premera, MultiCare's current offer would increase their costs between 33% to 97% for inpatient care and between 20% to 82% for outpatient services over the next four years.

MultiCare argues the cost of healthcare has increased in the past two years and Premera's current rates are lower than their competitors.

"Premera is one of our largest commercial insurers, but its reimbursement rates for hospital and clinician services are among the lowest. Those rates have not kept pace with rising costs driven by inflation, workforce needs, and investments necessary to preserve services and ensure long-term stability for the communities we serve," said MultiCare spokesman Kevin Maloney in a statement.

More than 64,000 Washington state residents have Premera insurance - a majority of whom have used MultiCare facilities and physicians across the state. There are approximately 11,000 Premera members within Spokane.

It is not the first time the two companies have been at loggerheads. In 2024 MultiCare and Premera faced a similar cliff, and a deal was struck in the hours before coverage was set to lapse.

If coverage does lapse it will not impact patients seeking emergency care or patients with Medicare Supplement insurance.

MultiCare officials said the system "remains committed" to ensuring Premera-insured patients have coverage.

" Our priority is to secure terms that allow us to continue caring for Premera members while also supporting the doctors, nurses, and teams who provide that care every day," Multicare's statement said.

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