The truth about our negotiation with UF Health
We recognize many of you are rightfully concerned regarding UF Health’s decision to leave our network as of Sept. 1. It was always our goal to reach an agreement that was affordable for Florida families and employers while ensuring continued access to the health system. Unfortunately, UF Health repeatedly sought a 30% price hike over two years for our commercial plans, including a more than 23% rate increase in year one, while also refusing to finalize the terms on which we agreed for our Medicaid plan.
As UF Health repeatedly pushes disinformation to the market, we believe facts matter and that you deserve the truth. As a result, we have created the following to help you understand the truth in response to the inaccuracies UF Health has communicated.
False. For the past several weeks we proposed multiple times that we finalize our Medicaid contract given we had an agreement on terms. UF Health refused.
UF Health approached us on the morning of Aug. 31 indicating it was willing to agree to renew our relationship for Medicaid. Shortly after, we provided UF Health a contract to finalize the terms the health system sought for our Medicaid plan. The only caveat was that we also proposed to finalize a contract that would ensure continued access to UF Health St. Johns – Flagler for our Medicare Advantage and Dual Special Needs Plan (DSNP) members as well, ensuring uninterrupted access to care for some of our most vulnerable members. Our proposal for UF Health St. Johns -- Flagler included the same terms and conditions we have in our existing contracts with all of UF Health’s other hospitals and providers that continue to participate in our Medicare Advantage and DSNP network today.
UF Health never responded to the contract or followed up to our outreach, allowing our contract to expire and unnecessarily disrupting access to care for people enrolled in our Medicaid and *Medicare Advantage plans.
* The majority of UF Health’s providers remain in our Medicare Advantage network and are not impacted by this negotiation. Only UF Health St. Johns–Flagler hospital and physicians are now out of network as of Sept. 1 for our Medicare Advantage plans.
Fact. We delivered a proposal to UF Health on Aug. 30 with additional compromises and meaningful rate increases on top of what we’d already proposed for our employer-sponsored commercial plans. UF Health never responded and chose to walk away from our commercial contract. The last proposal we received from UF Health was delivered on Aug. 29.
We provided UF Health a contract with the terms we’d agreed upon for Medicaid on Aug. 31. This would have ensured continued, uninterrupted access to care at UF Health for people enrolled in our Medicaid plans. UF Health never responded, allowing our contract to expire and unnecessarily disrupting access to care for UnitedHealthcare Community Plan members, presumably as leverage to pressure us to agree to the 30% price hike the health system is demanding over two years for our employer-sponsored commercial plans, including a more than 23% rate increase in year one.
It's important to note the majority of UF Health’s providers remain in our Medicare Advantage network and are not impacted by this negotiation. However, UF Health St. Johns–Flagler hospital and physicians are now out of network as of Sept. 1 for our Medicare Advantage plans. We provided UF Health a proposal that would have ensured continued access to UF Health St. Johns – Flagler providers for our Medicare Advantage and DSNP plans. Our proposal included the same terms and conditions we have in our existing contracts with all of UF Health’s other hospitals and providers that continue to participate in our Medicare Advantage and DSNP network. UF Health refused to finalize the contract, unnecessarily disrupting access to care for our Medicare Advantage and DSNP members who rely on UF Health St. Johns – Flagler’s providers for their health care needs.
False. We were willing and ready to meet. In fact, we proposed to UF Health that we meet at their Leesburg location. UF Health refused.
False. UF Health has received rate increases from UnitedHealthcare in nine of the past 10 years, ensuring the health system continues to be reimbursed at market-competitive rates and similar to their peers.
False. We have proposed meaningful rate increases for UF Health’s hospitals, facilities and its physicians.
False. We proposed annual, meaningful rate increases above the Consumer Price Index (CPI) trends for medical care from July 2023 to July 2024. The increases we proposed would ensure UF Health continues to be reimbursed at market-competitive rates similar to their peers.
CPI measures the U.S. city average change in prices consumers pay for goods and services. The CPI for medical services in July 2024 decreased 0.3%, including a 1.1% decrease for hospital services and a 0.1% increase in costs for physician and prescription drug services.
UF Health’s last proposal to us represented a 30% price hike in two years, and a more than 23% rate increase in the first year of our contract. Why does UF Health believe it is entitled to increase its costs by seven times the 12-month CPI trends for medical services, when consumers and employers would be largely responsible for these increases?
Fact. If UF Health was truly committed to preventing disruption for all of its patients, then it would have finalized the terms we agreed upon for our Medicaid contract and prevented disruption for approximately 30,000 Floridians who are enrolled in our UnitedHealthcare Community Plan. Instead, UF Health never responded to the contract we provided on Aug. 31 and allowed it to expire.
Likewise, UF Health would have agreed to ensure continued access to UF Health St. Johns – Flagler providers for our Medicare Advantage and DSNP plans, given our proposal included the same terms and conditions we have in our existing contracts with all of UF Health’s other hospitals and providers that continue to participate in our Medicare Advantage and DSNP network. Instead, UF Health refused to finalize the contract and has disrupted access to care for some of our most vulnerable members enrolled in both Medicaid and Medicare Advantage plans.
Lastly, if UF Health was committed to reaching an agreement, then it would have responded to our Aug. 30 proposal for our employer-sponsored commercial plans and provided a realistic proposal that’s affordable for Florida families and local businesses. Instead, the last proposal we received from UF Health on Aug. 29 increased a 30% price hike over two years, and a more than 23% rate increase in the first year of our contract, which is not acceptable or sustainable for consumers or employers.