Premera and MultiCare contract extended for 30 days
Updated 5/29/26

We’re pleased to report that Premera and MultiCare have reached a verbal agreement to extend our current contract while negotiations continue through the end of June. This means that MultiCare will remain in network for members with Premera health plans until at least June 30, 2026.

We welcome this meaningful progress, which demonstrates the commitment of both parties to staying at the negotiating table and reaching a fair resolution without disrupting care for the communities we serve.

This is not a final agreement, and there are still real differences to work through. But this extension provides more time and space for Premera and MultiCare to continue negotiating and work toward an agreement that fairly compensates our provider partner and ensures our members have access to quality care at a price they can afford.

Both our teams will be working to reach that sort of lasting agreement in the coming weeks in the way these negotiations should always be conducted—without putting members in the middle and potentially disrupting their care.

Please check back here for updates on these negotiations.

What to know about Premera and MultiCare contract negotiations
Updated 5/20/2026

Premera Blue Cross and MultiCare are in active negotiations over a new contract. Our priority is simple: keep MultiCare in-network while protecting employers and families from significant cost increases. There has been a lot said publicly about these negotiations. Here’s what matters most for the people we serve.

We are engaged and working toward an agreement

We have been actively engaged throughout this process and remain at the table working toward a fair agreement.

• We submitted our most recent proposal to MultiCare on May 15
• We have continued to communicate throughout negotiations
• We remain focused on reaching an agreement before the June 1 deadline

This negotiation began when MultiCare issued a termination notice in late 2025, setting a timeline toward a potential disruption. That decision was not a routine procedural step. It creates urgency and uncertainty for employers and patients, and it is an approach MultiCare has used in past negotiations as well. Our focus is on transparency, facts, and affordability as we work toward a resolution.

This negotiation is about cost and affordability

The central issue is not whether an agreement will happen, but whether the terms are affordable. Washington businesses have been clear: healthcare costs need to come down.

MultiCare is seeking increases that would raise the cost of care for employers and families. Those costs do not stay within the healthcare system. They show up in:

• Higher premiums
• Higher deductibles and out-of-pocket costs
• Increased costs for Washington employers
• Stifling job growth, delaying or eliminating wage increases, reductions in workforce

If we agreed to the current proposal, the impact would be significant. For example:

• A knee replacement could cost approximately $17,000 more
• Childbirth could cost approximately $6,000 more

For context, the annual median wage for a single household in Washington is about $50,576. These are real costs that affect family budgets and business decisions.

We shouldn’t be putting communities in a position where they have to choose between healthcare and basic needs.

Current payments are already at the higher end of the market

Our approach to affordability includes assessing hospital reimbursement using national benchmark comparisons, such as percent of Medicare, along with comparisons to other hospitals in the market.

Those benchmark comparisons show that MultiCare’s pricing is already at the higher end of the market in several key regions and service lines. For example:

• Benchmark analyses show hospital pricing levels exceeding 250 percent of Medicare overall
• For outpatient services, benchmark comparisons exceed 290 percent of Medicare, on average
• Premera paid more than $650 million for care delivered by MultiCare in 2024 and we paid MultiCare roughly $762 million in 2025.

These benchmarks are widely used to evaluate relative pricing across the healthcare system and provide important context for the current negotiations. The question is not simply how rates compare to inflation, but whether additional increases are reasonable given where pricing already stands and the impact on employers and families.

Our proposal focuses on where costs are growing fastest

Our approach is targeted.

We are maintaining current levels for inpatient hospital care while addressing areas where prices are already high and growing the fastest, including outpatient and certain professional services. This is not about across-the-board reductions. It is about preventing already elevated costs from increasing further and spreading across the system.

Value-based care remains important

We support value-based care because it is designed to improve quality and lower costs over time. We have not said we are eliminating value-based care programs. Our focus is on ensuring these programs deliver meaningful results. Today, these programs represent a small portion of total reimbursement and have produced mixed outcomes. Going forward, we will continue to support models that improve quality and reduce total cost of care, with a stronger emphasis on measurable performance.

How healthcare costs show up for members and employers

There has been confusion about premiums and how they relate to provider reimbursement. Premium changes cited publicly apply specifically to the individual insurance market, which serves a relatively small portion of members and is regulated and approved by the Washington Office of the Insurance Commissioner.

Most members are covered through employer-sponsored plans, where costs are driven directly by the price of care.

The key point is this: higher hospital prices lead to higher costs for employers and families across all types of coverage.

Who we are

Premera Blue Cross is a not-for-profit health plan that has served Washington communities for more than 90 years. About 90 cents of every premium dollar goes directly to healthcare services, including hospital care, physician visits, prescriptions, and more. Our responsibility is to balance access to care with long-term affordability for the people and employers we serve.

The broader context

Healthcare costs are rising across the country, and hospital pricing is a major driver of that growth. At the same time, hospital markets have become increasingly consolidated, which gives large health systems more leverage in contract negotiations.

When prices rise, the impact is felt directly by employers and families.

Our commitment moving forward

We remain committed to reaching an agreement with MultiCare that maintains access to care. At the same time, we have a responsibility to push back on pricing that would make healthcare less affordable for Washington families and employers. We will continue working toward a solution that does both.

Originally published April 16, 2026

As part of its negotiation process, MultiCare Health System (MultiCare) issued a termination notice to Premera Blue Cross, effective May 31, 2026. This termination will impact all commercial plans, along with Premera Blue Cross individual plans. These negotiations do not impact Premera members with Medicare Supplement coverage.

While we are continuing to negotiate to reach an agreement, the contracts MultiCare has chosen to terminate include all MultiCare clinics, hospitals, and all providers, including Yakima Memorial Hospital.  Overlake Hospital is not included in this contract termination.

Our intent with these negotiations is to ensure our members continue to have access to affordable, quality healthcare. As we’ve always said, these negotiations are not about Premera; they are about our customers. We serve as their advocate during these discussions.

Since November 2025, Premera Blue Cross has been working in good faith with MultiCare to renegotiate these contracts. We’re grateful for the patience of our customers as we work hard with our partners at MultiCare to reach a fair agreement.

Will I be charged for getting emergency care at MultiCare if they leave the Premera network?

If we do not reach an agreement by May 31, 2026, you will still be able to get emergency care at MultiCare facilities. Emergency care is always covered at the in-network cost under the federal No Surprises Act. Wherever you receive emergency care, you are protected from surprise (or balance) billing by state and federal law. This means the most the provider or facility may bill you is the plan’s in-network cost-sharing amount (such as copays and coinsurance), and you cannot be billed for any costs above the in-network rate.

What if I have a long-term treatment plan, am scheduled to deliver a baby, or have a chronic medical condition being treated at MultiCare?

If you are receiving treatment for a covered serious, complex, or chronic medical condition at any MultiCare facility, you may qualify for continuity of care benefits. This includes pregnancy, long-term or chronic illness, or a scheduled nonelective surgery. If approved, you can continue your care at MultiCare at the current in-network benefit level for up to 90 days. Contact our customer service team at the number on the back of your Premera health plan ID card for more information about this process.

If you have a scheduled elective surgery scheduled at MultiCare after June 1, 2026, you may need to reschedule. Contact our customer service for assistance in finding options for your care.

What happens next?

Through May 31, 2026, regardless of ongoing negotiations, you may still receive care from MultiCare providers and associated facilities on an in-network basis. Beginning June 1, 2026, if a new agreement has not been reached, non-emergency care may not be covered or will cost more out of pocket if you receive care from MultiCare providers and facilities.

What other healthcare options are available in my area? 

For primary care and urgent care, consider options such as:

• Kinwell clinics throughout Washington and Kinwell’s virtual care clinic
• Virtual care providers, such as 98point6 or virtual behavioral health options included with your Premera health plan
• Zoom and Optum Urgent Care Clinics

As we continue our efforts to reach an agreement with MultiCare, there may be options depending on your health plan network and plan funding type:

If you live in Spokane County

For fully insured members with the Heritage Prime (noted on the front of your Premera health plan ID card), arrangements have been made for you to use Providence Holy Family and Providence Sacred Heart beginning June 1 at the in-network benefit level.

Premera HMO members may still be able to use the MultiCare hospitals and clinics in Spokane County as if they were still in your network.

If you live in South King County

For fully insured members with the Premera Blue Cross HMO plan (noted on the front of your Premera health plan ID card), arrangements have been made for you to use St. Elizabeth Hospital, St. Anne Hospital, or St. Francis Community Hospital beginning June 1 at the in-network benefit level.

If you live in Pierce County

For fully insured members with the Heritage Prime, Individual Signature, or Heritage Signature and Dental Choice (noted on the front of your Premera health plan ID card), arrangements have been made for you to use St. Anthony Hospital, St. Joseph Medical Center, or St. Clare Hospital beginning June 1 at the in-network benefit level.

Premera HMO, Heritage Prime, Individual Signature, Heritage Signature and Dental Choice members may still be able to use the MultiCare hospitals and clinics in Pierce County as if they were still in your network.

Premera Individual Signature members may still be able to use Mary Bridge Children’s Hospital as if it was still in your network.

If you live in Thurston County

For fully insured members with Heritage Prime (noted on the front of your Premera health plan ID card), arrangements have been made for you to use Providence St. Peter and Providence Centralia Hospital beginning June 1 at the in-network benefit level.

Premera HMO members and Heritage Prime members may still be able to use the MultiCare hospitals and clinics in Thurston County as if they were still in your network. For Heritage Prime members in Lewis County, you may still be able to use the MultiCare hospitals and clinics as if they were still in your network.

If you live in Yakima County

For fully insured members with Heritage, Heritage and Dental Choice, Heritage Prime, Heritage Signature and Dental Choice, and Individual Signature (noted on the front of your Premera health plan ID card), arrangements have been made for you to use Astria Health Systems beginning June 1 at the in-network benefit level.

Premera members may still be able to use the MultiCare hospitals and clinics in Yakima County as if they were still in your network.

For Premera members with self-funded Heritage, Heritage and Dental Choice, or BlueHPN (using Heritage Prime) networks, MultiCare hospitals and clinics will be out of network and you will pay at the out of network benefit level.

For more information

If you need more information about doctors in your area, sign into your Premera account and use our Find a Doctor tool or call customer service at the phone number listed on the back of your Premera health plan ID card.

Regardless of where you live in Washington, to get the best results when searching for an in-network provider, create an account and sign in on premera.com.

We will keep you updated on the status of negotiations here. If we are unable to reach an agreement with MultiCare, or if you want to find another in-network doctor or healthcare professional, we will work with you to safely move your care with as little disruption as possible.

Click here to learn more about the process behind provider negotiations.