WellNow Urgent Care drops Excellus BlueCross BlueShield due to 'unfair rates'

SYRACUSE (WSYR-TV) -- After more than a year trying to negotiate with Excellus BlueCross BlueShield, WellNow urgent care announced Tuesday, October 31 that they will no longer accept Excellus because of "unfair rates." as of the end of the year.

Just last month, WellNow announced they were temporarily closing locations and that's because the company was sending a warning to Excellus, urging them to update "current and renewal reimbursement rates that reflect both the cost and the value of the services WellNow Urgent Care centers provide."

In its warning letter sent to Excellus on Sept. 30, WellNow stated Excellus "failed to commit to reasonable reimbursement rates for the critically important, quality healthcare services WellNow Urgent Care centers deliver to Excellus insureds in communities throughout Central New York."

They gave Excellus 30 days to mutually agree with its terms from the date of the letter, but now that it's past the 30 days, WellNow said they have "no choice but to exit our business relationship with Excellus effective January 1, 2024, and go out of network."

According to WellNow, Excellus has been unwilling to commit to current and renewal rates greater than 2017 levels.

"Excellus’s rates are significantly less than those other similar plans pay, despite Excellus -- like clockwork almost every year -- increasing the premiums it charges its insureds. To add insult to injury, Excellus’s rate structure unfairly penalizes WellNow for testing services our urgent care centers provided during the COVID-19 pandemic," stated WellNow.

WellNow has 13 locations across Western and Central New York, and even then, the company says there are "healthcare desserts."

"As data shows, urgent care centers save money for insurance carriers such as Excellus by servicing patients who would otherwise be forced into hospital emergency rooms where costs are higher, wait times are longer, and distances to travel are farther for most patients," stated WellNow.

However, WellNow says Excellus knows this and is "picking and choosing which urgent care centers receive rates for comparable services to WellNow, with other centers receiving up to 4-5x what WellNow receives in reimbursement from Excellus today."

After hearing news of the decision, Senator John W. Mannion, Assemblymember William B. Magnarelli, and Assemblymember Monica P. Wallace all sent letters to Excellus, urging Jim Reed, chief executive officer of Excellus BlueCross BlueShield, to reconsider.

"We urge you to immediately return to the table and negotiate a mutually beneficial solution to provide access and insurance coverage to quality healthcare at 13 WellNow locations across Central New York," stated Mannion in his letter.

Reed responded to Mannion's letter by saying "While I understand WellNow seeks a significant increase in unit cost reimbursement, we cannot responsibly accept the proposal they presented."

In addition, Reed alleged that WellNow has "engaged in an aggressive campaign seeking support from the media, politicians, and patients" and said that Excellus disagrees with "the accuracy of their allegations."

Those with BlueCross BlueShield will soon need to start paying out of pocket starting Jan. 1, 2024.