Healthcare Prices May Be on the Rise as Baptist Health and Florida Blue Battle It Out

Words by Carmen Macri 

A dispute between Northeast Florida’s largest healthcare system and its leading health insurance provider has left tens of thousands of people uncertain about their future healthcare.

The three-year contract between Baptist Health and Blue Cross Blue Shield Florida (BCBS) is set to expire on Sept. 30. If a new agreement isn’t reached, up to 50,000 people may have to seek alternative medical options or face out-of-network charges to continue using certain Baptist facilities, physicians or services.

Contract negotiations between Baptist Health and BCBS have been underway since early 2023 with Baptist Health allegedly seeking a 70% rate increase with BCBS over four years, which would result in an additional $1.2 billion in costs for medical services. Baptist Health maintains they have only requested rates consistent with what BCBS pays to other similar healthcare systems, citing the need to account for years of being underpaid.

BCBS claims that the proposed increases are excessive and would significantly drive up healthcare costs for their members.

They even released a statement claiming, “The group is demanding double-digit annual rate increases that are well above inflation. These increases would add up, over the next five years, to hundreds of millions of dollars. This burden would be passed onto the community and our members — many of whom are already struggling financially. Baptist Health’s rate demands and refusal to discuss reasonable terms do not reflect ‘good faith’ negotiations — and hardly the actions of a mission-based organization.”

In the meantime, private practice physicians such as Dr. Rene Pulido of Emed Multispecialty Group are gearing up for patients caught in the dispute by offering comprehensive primary care and pain management services to all BCBS members.

“For many patients, the prospect of losing in-network access to Baptist Health’s extensive network of hospitals, emergency rooms, imaging centers, labs, primary care, and specialty care services is a daunting one,” Pulido shared. “The potential financial burden and disruption to ongoing medical treatments have left patients feeling caught in the crossfire of a high-stakes negotiation.”

Charles Thomy, Emed Multispecialty Group marketing director, explained about what this could mean for current Baptist Health and BCBS patients. 

“It’s like two old friends having a bit of a disagreement about money. Baptist Health feels they deserve to be paid more for the care they provide to Blue Cross Blue Shield members, while BCBS is trying to keep costs down for their customers,” Thomy added. “Unfortunately, patients are caught in the middle. If they can’t find a solution by October 1st, it might mean patients have to pay more out of pocket, find new doctors, or even delay their care. It’s a stressful situation for everyone involved.”

During this time of uncertainty for many Florida residents, the doctors at Emed want to make it known that their patients’ BCBS insurance coverage will still be accepted with no end in sight.

“I know this is a lot to take in, and it’s natural to feel worried. My best advice is to stay informed. Reach out to your insurance company and ask questions about your coverage. If you need to find a new doctor, start that search now,” Thomy explained. “And please, don’t put off any necessary medical care. At Emed, we’re here to help. We’re accepting new patients with BCBS insurance, and we’ll do our best to make this transition as smooth as possible.”

Realistically, it’s likely that the two powerhouses will eventually reach an agreement, though it may fall short of Baptist Health’s demand for a 70% increase. Ideally, both sides will prioritize their patients’ needs over financial disputes, finding a middle ground that ensures accessible care for the community.

“We believe that everyone deserves quality care, regardless of their budget. We work hard to negotiate fair rates with insurance companies, but we also look for ways to be more efficient and keep our own costs down,” Thomy shared. “We want our patients to focus on getting better, not worrying about the bill.”