BETHLEHEM, Pa. — Lehigh Valley Health Network said Monday it plans to terminate its contracts with UnitedHealthcare, a move that would leave roughly 70,000 patients facing higher out-of-pocket costs beginning next year if no new agreement is reached.
The health system, part of Jefferson Health, said it has been in negotiations with UnitedHealthcare for more than two years but has been unable to reach terms on a new contract. In a letter sent Monday, LVHN notified the insurer of its intent to end the relationship.
“Like all health systems, we are facing significant headwinds as costs rise faster than reimbursement,” Mark Whalen, executive vice president and enterprise chief strategy and transformation officer for Jefferson Health, said in a statement. “Sustainable, fair payment is essential to maintaining access and quality for the communities we serve.”
Whalen said LVHN’s goal remains to reach a “fair agreement” that ensures adequate reimbursement to protect access to care.
If no deal is reached, contracts will expire Jan. 25, 2026, for patients with UnitedHealthcare Medicare Advantage plans, and April 25, 2026, for those with commercial insurance.
UnitedHealthcare, one of the nation’s largest insurers, criticized the move, saying LVHN was using consumers as “leverage.”
In a statement, a company spokesperson said UnitedHealthcare submitted a contract proposal to LVHN in April and has yet to receive a counteroffer. The insurer said LVHN’s last proposal, made in December 2024, included a nearly 30% rate increase in the first year.
“Lehigh Valley is making misleading and potentially false public statements about the status of our relationship in the middle of the Medicare Annual Enrollment period presumably as a negotiating tactic,” the spokesperson said. “We ask Lehigh Valley to join us at the negotiating table and work toward an agreement that is affordable rather than using consumers as leverage to significantly drive up health care costs for Pennsylvanians and local companies.”
The change would only affect patients receiving care at legacy LVHN hospitals and physician practices. Jefferson Health, which merged with LVHN earlier this year, maintains separate contracts with UnitedHealthcare that will remain in effect.
In November 2022, the health network also threatened to cut ties with Aetna over what it described as unfair payment practices, but the two sides reached a new agreement about a week later.
LVHN said UnitedHealthcare patients should continue attending their appointments for now, as coverage remains in effect until the contracts end. If the termination proceeds, patients could continue seeing their LVHN providers but would likely pay higher out-of-network rates.
