The contract dispute between Providence Health & Services and Aetna has led to Providence being dropped from Aetna’s health insurance network as of January 1, 2025, after the two parties failed to reach a new agreement.
This impacts around 9,000 Aetna-insured patients across Oregon, who will now face high out-of-network costs or must seek alternative care providers.
Providence and Aetna are in a standoff over reimbursement rates, with Providence accusing Aetna of not sharing in rising healthcare costs. While patients in Jackson and Josephine counties will remain in-network until February 17, broader negotiations are ongoing.
This dispute is part of a wider trend of contract disputes between insurers and healthcare providers over compensation rates, which is a central issue in the increasingly tense negotiations between the two sides. Additionally, Providence is also in the midst of labor contract negotiations with its nurses and other healthcare workers, with a strike scheduled for January 10, 2025.