RMC to discontinue acceptance of Blue Cross insurance in September

A dispute over money between Regional Medical Center and Blue Cross and Blue Shield of Alabama may result in blue cross  customers being without coverage at the Anniston-based hospital network in September.
RMC officials say Blue Cross should pay more for the hospital’s services to match what the insurer pays other area hospitals — allowing it to stay competitive. Meanwhile, Blue Cross says it won't increase its reimbursements to RMC, arguing that to do so would raise customers' premiums too much.
In a Thursday press release, Blue Cross stated that RMC is terminating its contract with the company, effective Sept. 12. As a result, most services offered at RMC will not be covered by Blue Cross insurance after that date.  Blue Cross will still be required to cover any emergency treatments performed in RMC's emergency rooms.
After Sept. 12, the nonprofit RMC will become the only hospital in Alabama not included in Blue Cross' statewide network.  Blue Cross has been informing its customers and the medical community about the situation in recent days and pointing them to other hospitals to use instead of RMC.
Blue Cross controls about 90 percent of the market in Alabama.
With more than 1,500 employees, RMC is one of the region’s largest employers. It operates two hospitals in Calhoun County, and has facilities in Roanoke, Talladega and Piedmont. Approximately one-third of its annual revenue comes from Blue Cross reimbursements.
According to RMC, over the past 10 years, Blue Cross has paid RMC up to 30 percent less for providing the same services as nearby hospitals, specifically Stringfellow Memorial Hospital and two hospitals in Gadsden, all operated by Tennessee-based Community Health Systems. David McCormack, CEO of RMC, said that the reimbursement rate has meant that RMC's competitors have received millions of dollars more from Blue Cross in recent years for providing the same services.