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Ga. governor, UGA president denounce Blue Cross Blue Shield, Piedmont squabble

Governor Nathan Deal and UGA President Jere Morehead are demanding the two companies come to a decision over coverage as their own employees' lives and wellbeing remain in the balance.

The governor of Georgia and the president of one of it's largest universities are taking aim at a dispute between an insurance company and the owner of several area hospitals.

In a letter to the heads of Blue Cross Blue Shield of Georgia and Piedmont Healthcare, University of Georgia President Jere Morehead described his disappointment in their current quarrel. And in a separate letter, Governor Nathan Deal demanded the two return to the negotiating table.

"My administration will not sit idly by during this contract dispute and leave our state and university system employees, teachers and their families in the balance,” Deal said. “My top priority is the well-being of our members. Blue Cross Blue Shield of Georgia and Piedmont Healthcare must return to the negotiating table, and Blue Cross Blue Shield must honor the contractual obligations made to the state."

For state employees, Deal plans to "absorb out-of-network claims for affected employees" for up to 30 days to help soften the blow.

The university system is already working on their end of the deal to also offer a brief reprieve to its employees who are caught in the middle.

“We want to make sure University System of Georgia families have access to the care they need and this 30-day extension is a necessary step to provide coverage for our employees,” university system chancellor Steve Wrigley said.

According to a spokesperson for Piedmont Healthcare, the two companies have been unable to work out a new 3-year contract due to issues with the insurance payouts to the hospital.

Related:

Why Blue Cross Blue Shield and Piedmont Healthcare are at odds

Anthem-Blue Cross dispute may increase cost of healthcare for thousands

Piedmont Healthcare says doctors have been working to reduce costs and increase the quality of coverage but the insurance provider suddenly backed off of offering doctors any more money at all.

Piedmont Healthcare spokesperson Matt Gove said that the final offer was instead to pay physicians less than the inflation rate.

"It did not even keep pace with the basic cost of living adjustments for our physicians," he said.

Right now, there's no public solution in place and no word on when or if the two will come to a solution. Until they do, nearly 600,000 Georgians who can't afford to pay the out-of-network costs will either have to find another provider or put their visits on hold.

Of that half-million, President Morehead spoke up for the nearly 10,000 represented by faculty, staff and retirees of UGA and urged the two parties to find a resolution soon.

"This disruption is very challenging for our institution and jeopardizes the health and financial stability of your UGA clients," Morehead said. "Healthcare selections were made last fall with the understanding that the terms of enrollment would be honored through 2018."

It's a problem felt in Atlanta with several hospitals run by Piedmont Healthcare, but it's perhaps more of an issue for residents in and around Athens. That's because one of the main hospitals in town, Athens Regional Medical Center, is under the Piedmont banner.

"Many individuals have longstanding relationships of trust with local physicians and some are being treated for chronic diseases requiring constant attention," Morehead said.

The outcome so far comes after over 9 months of negotiations. As of Monday evening, Blue Cross Blue Shield of Georgia has not commented on the disruption except to say that negotiations are ongoing.

But President Morehead hopes they don't end there - for the sake of those he alluded to in his letter.

"On behalf of the nearly 10,000 faculty, staff and retirees of the University of Georgia who depend on you for provision of health care and insurance for themselves and their dependents, I urge you to resolve this matter and reach a contract resolution without further delay."

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