Nashville mayor weighs in on Vanderbilt, Humana contract dispute

• Vanderbilt University Medical Center has threatened to drop Humana as a Medicare Advantage provider unless it increases payments for services
• Mayor John Cooper is urging both sides to continue negotiations so that Metro employees aren’t affected
• If a deal isn’t reached, VUMC will drop Humana as a Medicare Advantage provider on April 1

Mayor John Cooper is urging Vanderbilt University and the Medicare Advantage insurance provider, Humana, to settle a contract dispute that could affect plans carried by Metro employees over the age of 65.

At issue is Vanderbilt University Medical Center’s declared decision to stop offering Medicare Advantage plans through Humana and Wellcare of Tennessee, effective April 1. The hospital is citing inadequate payments for medical services and has already begun notifying patients of its decision, said Vanderbilt spokesman Craig Boerner.

Such notices of contract termination are not uncommon in negotiations between hospitals and insurers before parties eventually come to terms.

Cooper’s letter, dated Jan. 10, urged both sides to continue negotiations. Should negotiations fail, Cooper suggested that both parties allow for Metro government Medicare Advantage beneficiaries to continue to receive Vanderbilt services as an out-of-network provider.

“A decision to terminate participation in the plan could pose sudden, drastic, and potentially harmful consequences for our valued pensioners and dependents,” Cooper wrote. ” Moreover, termination could pose significant consequences for beneficiaries through Davidson County who are age 65 and over and rely upon Humana Medicare Advantage for their healthcare services.”

Vanderbilt has created a website for Medicare Advantage patients affected by the changes (VUMCMedicareAdvantage.com) and a dedicated phone line for those who want to speak to someone: 855-429-2989.

The university released a statement explaining its reasoning:

“The change is necessary because health systems like VUMC need to be paid fairly for services they provide and continue to contend with higher costs for personnel, supplies, equipment, and medications necessary to provide high-quality care,” the statement read. “These factors, among others, have caused unprecedented cost increases. To ensure our mission, we must take this step.”