Updated August 28, 2024

The University of Florida Health (UF Health) is demanding a more than 25% price hike in just the first year of our commercial contract and is refusing to finalize the terms we’ve agreed to for our Medicaid plan

For the past several months we’ve made numerous efforts to try to move our negotiation forward with UF Health. Unfortunately, little progress has been made due to the health system’s repeated demands for a more than 25% price hike in just the first year of our contract.

UF Health is also refusing to finalize the agreed-upon terms for our Medicaid plan. This would have ensured continued, uninterrupted access to UF Health’s hospitals, facilities and physicians for our UnitedHealthcare Community Plan members while we continued efforts to renew our commercial relationship.

It has always been our goal to reach an agreement that is affordable and ensures continued network access to UF Health. Unfortunately, the health system has made that outcome unrealistic to date.

While we remain committed to continued good-faith negotiation, we can only assume UF Health’s intentions are to leave our network given their continued demands for outlandish rate increases that aren’t acceptable or affordable for the people we collectively serve.

If we are unable to reach an agreement, UF Health will be out of network for our employer-sponsored commercial plans, including UMR, as well as our Student Resources plan and Medicaid plans, effective Sept. 1, 2024.

Please note UF Health’s psychiatric hospital and UF Health Central Florida are on a separate contract and are not impacted by our negotiation. They continue to remain in our network.

Important note for people enrolled in our Medicare Advantage plans: Only UF Health St. John’s – Flagler Hospital and its physicians would be out of network for our Medicare Advantage plans if we are unable to reach an agreement prior to Sept. 1

This negotiation does not impact Medicare Advantage plans or our Dual Special Needs Plans (DSNP) at other UF Health hospitals and professional provider locations throughout the state, such as but not limited to: UF Health Gainesville, Jacksonville, Leesburg or The Villages Regional Hospital. They continue to remain in-network with UnitedHealthcare for our Medicare Advantage plans, regardless of the negotiation outcome.

UF Health is putting some of Florida’s most vulnerable residents in the middle of this negotiation, potentially creating unnecessary and completely avoidable disruption in access to care for our Medicaid members

We already have an agreement on rates and terms for our Medicaid plan and provided a proposal on multiple occasions to finalize a separate contract. This would have ensured continued, uninterrupted access to UF Health’s hospitals, facilities and physicians for our UnitedHealthcare Community Plan members while we continued efforts to renew our commercial relationship. UF Health has repeatedly rejected our proposals.

Nearly 70% of UF Health’s total price hike demands for our commercial plans would come out of the operating budgets of self-insured employers

UF Health’s rate demands would directly drive up health care costs for our self-insured customers given that these employers pay the cost of their employees’ medical bills themselves rather than relying on UnitedHealthcare to pay those claims. Nearly 70% of our commercial members throughout northern Florida are enrolled in self-insured plans.

Agreeing to UF Health’s rate demands would mean approximately 20 self-funded businesses would each see their health care costs go up by $200,000 or more in just one year. Three self-funded employers would see their costs increase by approximately $600,000 or more each, with one experiencing approximately $1.6 million in increased health care costs over the next 12 months.

This would mean these employers have less money available to help grow their business through things like investments in new technologies or increase salaries for employees.

UF Health’s proposal would significantly impact what consumers pay for services received at its hospitals

To help illustrate the impact of the health system’s more than 25% price hike demands in just one year, consider the following examples:

  • The cost of a C-section would increase by more than $5,000 at Shands Jacksonville, while the same service would go up by more than $4,000 at Shands UF Gainesville.
    • That means on average a person with a 20% co-insurance could expect to pay $1,000 more out of pocket than they do today for this service at Shands Jacksonville, and approximately $800 more at Shands UF Gainesville.
  • The cost of a vaginal delivery would increase by approximately $3,600 at Shands Jacksonville and by $3,100 at Shands Gainesville.
  • The insertion of a permanent pacemaker would increase by approximately $12,000 at Shands Gainesville. 

It remains our goal to reach an agreement that is affordable for the people we serve while ensuring continued access to the health system. However, we need UF Health to share our commitment and work toward realistic solutions Florida families and employers can afford.

Our goal is to keep UF Health’s hospitals and physicians in our network at market-competitive rates. We have made significant compromises and remain committed to continued good-faith negotiation with the goal of renewing our relationship at rates that are affordable for Florida families and local employers.

We have created the following FAQs to ensure you and your family have the information needed regarding next steps as well as details to help meet your health care needs:

FAQs