Northern Light Health ends contract negotiations with Anthem

By Ethan Andrews, Bangor Daily News Staff

Northern Light Health announced Friday, Aug. 15 that it is ending contract negotiations with Anthem Blue Cross and Blue Shield.

Starting Oct. 1, Northern Light services will now be out of network for people insured by Anthem, the Brewer-based health system said.

Contract talks between Northern Light, one of the largest health care providers in Maine, and Anthem, the state’s largest insurer, have been messy and public in recent months with each accusing the other of jeopardizing the relationship at the expense of patients.

On Aug. 15, Northern Light blamed Anthem’s “decision to withhold interim payments for services provided and a cumbersome prior authorization process” that led to unnecessary trouble caring for patients at Northern Light facilities.

Recently, Northern Light said its contract with Anthem would expire on Sept. 30 if the insurer didn’t agree to raise reimbursement rates.

Anthem has said Northern Light Health wanted a 30 percent price increase over three years.

“In the event that Anthem comes back with a reasonable offer, Northern Light will consider that,” the system said. “The time has arrived, though, where Northern Light Health cannot stand passively awaiting a constructive proposal when there is no indication of a desire to that end on the part of Anthem.”

In 2022, a contract dispute between MaineHealth and Anthem played out in public, with the health system accusing the insurer of owing millions in back payments and holding up and disputing millions more in payments, while Anthem accused MaineHealth of millions in overcharges.

Before the contract expired, both sides reached a deal, preventing MaineHealth from withdrawing from Anthem’s network.