UnitedHealthcare and Fairview Health Services are announcing a deal that keeps the Minneapolis-based health system in the insurance company’s network next year, avoiding a significant disruption in access to care for about 125,000 people who get insurance through their employers.
Eden Prairie-based UnitedHealthcare, the nation’s largest health insurer, and Minneapolis-based Fairview, one of the largest hospital and clinic operators in Minnesota, confirmed the agreement to the Minnesota Star Tribune on Tuesday evening while also posting online messages to patients.
They have been negotiating for months on a new contract to replace their current agreement, which expires at year-end.
“We’ve reached an agreement in principle with Fairview Health and are actively working with the health system to finalize the terms of our new contract," UnitedHealthcare said in a statement.
When the dispute surfaced in November, Fairview said UnitedHealthcare’s payment rates had not kept pace with the health system’s cost pressures from inflation, worker shortages and the COVID-19 pandemic. United said Fairview was demanding a 23% price hike over three years that would boost overall costs, delivering a financial blow to employers and workers.
On Tuesday, neither side released details on how they settled their differences.
The dispute threatened access to care for people with employer-sponsored health plans. Since Fairview owns University of Minnesota Medical Center, the potential disruption was particularly critical for patients with complex conditions who rely on highly specialized health care services provided by the U.
The contract impasse became public shortly after UnitedHealthcare and Fairview announced a deal to prevent disruption for Medicare Advantage patients.
