Dive Brief:
- UPMC Health has made an aggressive move against competitor Highmark by asking a major group of educators—the Allegheny County Schools Health Insurance Consortium—to reconsider their no-bid contract to Highmark.
- UPMC wrote to the group that the decision "deprives members of choice in their healthcare"
and that they are "missing the opportunity to actually lower healthcare costs by engaging in a competitive bid process." - The situation raises the rivalry between the two Pittsburgh-area health systems during an open enrollment period.
Dive Insight:
Despite UPMC's efforts, the deal still appears to be going to Highmark. Janice Klein, chair of the educator consortium, said the group did consult with other carriers and that their trustees considerd Highmark to be offering lower-cost, higher-quality services.
"We want to engage people to look at the costs," Klein said. "And they're doing that. There's no way any of the competitors can save us more money," she told the Business Times.
UPMC, meanwhile, appears hopeful of a change of heart. The company's letter states that, "We urge you to reconsider this decision prior to July 1 to be a good steward of taxpayer dollars, to seek competitive bids and also to seek the input of your members so that the 43,000 people affected will be able to access in-network care to the highly desired UPMC physicians and hospitals."