Health Plan of the Redwoods Reaches Contract Agreement with Primary Care Associates
Health Plan of the Redwoods and Primary Care Associates have reached a contract agreement, ending one of the "most contentious" negotiations between an insurer and a medical group over reimbursement rates, the Santa Rosa Press-Democrat reports. Although the companies have not released details about the agreement, officials familiar with the talks said that HPR and the medical group "were not far apart" on reimbursement rates. HPR proposed reimbursement rates at 116% of Medicare rates, while Primary Care Associates sought 120%. The agreement will allow about 17,000 HPR members to retain their physicians. However, HPR has not reached contract agreements with several other medical groups in Sonoma County, including Sutter Medical Group of the Redwoods and Sonoma Valley medical group. The Press-Democrat reports that negotiations with Sutter and Sonoma Valley will likely "be concluded successfully." HPR also will likely reach an agreement with Valley of the Moon Medical Group after resolving "minor contract issues" (Rose, Santa Rosa Press-Democrat, 11/24). Despite the delay in contract agreements, most HPR members have guaranteed coverage next year under an agreement that the insurer has with Sutter Medical Group, the largest medical group in the county (California Healthline, 11/20).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.