- Associated Press - Saturday, January 31, 2015

SAN JOSE, Calif. (AP) - Health insurance provider Blue Shield of California and the Sutter Health network of doctors and hospitals have reached agreement on a new contract, ending a dispute that threatened to force nearly 280,000 consumers in Northern and Central California to find new doctors.

The companies announced the two-year contract on Friday. It means Blue Shield patients will be able to continue using Sutter doctors and hospitals without going out of their coverage network.

Sutter had accused Blue Shield of proposing substantial payment cuts. Blue Shield had countered that Sutter was charging 18 to 30 percent more than other providers.

The San Jose Mercury News reports (https://bayareane.ws/1CV3I21) that the rate dispute was solved, though neither side would reveal details of the contract. A separate concern over Sutter’s attempt to expand mandatory arbitration was left on the table.

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Information from: San Jose (Calif.) Mercury News, https://www.mercurynews.com


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