How much is enough?

Insurance companies like Regence regularly negotiate with health care providers like Salem Health to get their members the best prices for medical services.

In the case of Salem Health, instead of negotiating to arrive at an agreement that is fair for patients and the doctors and nurses who treat them, Salem Health’s leadership has approached the latest negotiations as they have in the past – making unreasonable and unrealistic demands for more money.  

Salem Health’s demands have ranged from an estimated 41% to more than 35%, well above the state’s cost growth target of 3.4%. These demands threaten affordable access to care for Oregonians, whose income growth is expected to average 3% in the coming years, according to the state’s September 2024 Economic and Revenue Forecast.

We believe doctors and nurses should be paid fairly for the care they provide patients. We also believe health care should not send people into bankruptcy. As a nonprofit health plan, our premiums and out-of-pocket costs reflect in large part the cost of care delivered by providers. That’s why we negotiate in good faith for reasonable cost increases that balance the needs of providers with the cost burden to patients and are holding the line against providers who demand unsustainable increases in the cost of care. 

We are not negotiating with Salem Health’s doctors or nurses. We are negotiating with their hospital system administrators. We are asking them to put the people of Oregon over the profits and growth of their corporation and come to the conversation with a reasonable and realistic offer.

Read more about how we are ensuring our members get the care they need.