PORTLAND, OREGON — Legacy Health’s contract with Regence was terminated after the companies were unable to reach an agreement on reimbursement rates.
Michael Cole, president of Regence Blue Cross of Blue Shield of Oregon, said in a post on the health insurance company’s website Wednesday that the two companies were unable to agree on rates that would “effectively address and contain rising health care costs.”
Cole went on to say that as of Wednesday, Legacy Health will no longer be in network for Regence Health insurance members.
However, there may be “some exceptions” as Legacy notes that hospital services and some clinics could remain in-network for an additional 12 months.
“Approximately 29,000 Regence members who receive legacy health services have been notified of the potential network changes,” a Regence spokesperson told KATU.
The move comes after weeks of negotiations and is expected to have a major impact on the many people receiving care at Legacy Health.
A Legacy Health spokesperson said in a statement to KATU News:
Legacy Health, a community-based nonprofit health system, has experienced a significant increase in operating costs since the pandemic. We rely on our payment partners, including Regence, to appropriately share our increasing costs so that we can continue to provide quality care.
We have made a proposal to Regence, but they have not responded to any new proposals and negotiations have stalled. As a result, Regence members may be removed from the Legacy Health Services network starting April 1. We continue to work toward a resolution and look forward to Regence’s continued involvement.
Despite our efforts to reach an agreement, we are disappointed that patients may experience treatment interruptions. Legacy has an offer that reflects both the rising cost of health care and the value we provide, and we will continue to negotiate. However, reimbursement rates that do not support the costs of providing quality care are unacceptable.
Additional details, including an overview of the negotiations, factors driving the cost increases, and what this means for patients, are outlined in a community letter available at LegacyHealth.org/RegenceContract.
Regence members should call the number on the back of their health insurance card to learn about their options. A list of clinics and their current network status can be found at LegacyHealth.org/RegenceContract.
Reaching agreements that ensure continued access to care remains our priority as we continue to advance our mission of health in the communities we serve.
Statement from Regence Blue Cross Blue Shield of Oregon:
Despite weeks of good faith negotiations, Regence and Legacy Health were unable to reach an agreement on reimbursement rates that would effectively address and contain rising costs of care. As of April 1, 2026, Legacy Health is no longer part of the Regence member network in Clark County, Washington and the Portland metropolitan area, with some notable exceptions. Had Legacy Health initially requested a 28.8% rate increase, premiums would have increased significantly, far beyond what inflation, wages, and actual medical costs would justify. As a regional nonprofit health plan, Regence works for its members, not its shareholders. Ninety cents of premiums go directly to health care, and when hospital costs go up, members and employer customers pay the price. Although we cannot control provider rates, we can and must negotiate robustly on behalf of the people and businesses we serve.
We understand that this matter has caused concern and inconvenience to our members. I want to be clear that we remain fully committed to negotiations and remain engaged in active discussions with legacy leaders. We have a dedicated customer service team to assist you with any questions or concerns you may have. If you need assistance making an appointment or accessing care, please call the number on the back of your Member ID card. For more information, please visit our blog: Legacy Health Negotiations | Regence
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