# WA OIC Memorandum (2024-08-30): Aug. 30, 2024, memorandum regarding Aetna and Providence contract negotiations

> Washington · Agency guidance · In force

URL: https://www.frixlaw.com/law-library/statutes/WA_OIC_MEMO_AETNA_PROVIDENCE_BRIEFING_MEMO_AUG_2024

## Section

- **Citation:** WA OIC Memorandum (2024-08-30)
- **Heading:** Aug. 30, 2024, memorandum regarding Aetna and Providence contract negotiations
- **Jurisdiction:** Washington
- **Kind:** Agency guidance
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Washington OIC Technical Assistance Advisories and Emergency Orders / Aug. 30, 2024, memorandum regarding Aetna and Providence contract negotiations

## Text

Memorandum
To:
Interested legislators and staff
From:
Jane Beyer, Senior Health Policy Advisor
Jennifer Kreitler, Provider Network Oversight Program Manager
Date:
August 30, 2024
Subject:
Aetna and Providence
In 2016, the Office of the Insurance Commissioner (OIC) adopted network access standards to
ensure that insurers have a sufficient number, type and distribution of health care providers and
facilities to meet the needs of consumers enrolled in their health plans (Chap. 284-170 WAC).
Under those rules, insurers must notify OIC of any changes affecting the ability of their network
providers and facilities to furnish covered services to enrollees, including potential contract
terminations (WAC 284-170-230(2)). Carriers also are required to notify affected health plan
enrollees of potential contract terminations (WAC 284-170-421(10)).
On June 10, 2024, Aetna notified the OIC of a potential termination of their contract with
Providence for their commercial health plans. The termination does not apply to people
enrolled in Aetna Medicare Advantage plans. Aetna has sent notices to commercial health plan
enrollees regarding the potential contract termination.
Providence and Aetna are engaged in contract negotiations. If an agreement is not reached,
Providence will no longer be an in-network provider with Aetna for their commercial health
plans effective September 1, 2024. The termination would apply to Providence, Providence
Swedish, PacMed and Kadlec hospitals.
OIC continues to receive updates from Aetna regarding the status of contract negotiations,
which are ongoing. If Aetna and Providence reach agreement on a contract, OIC will expedite
review of those contract submissions for approval.
In the event that a contract agreement is not reached, there is a new federal law that provides
some assurance of continuity of care. The law was included in the Consolidated Appropriations
Act of 2021 (§§2799A-3 and 2799B-8 of the Public Health Service Act)
are ongoing. If Aetna and Providence reach agreement on a contract, OIC will expedite
review of those contract submissions for approval.
In the event that a contract agreement is not reached, there is a new federal law that provides
some assurance of continuity of care. The law was included in the Consolidated Appropriations
Act of 2021 (§§2799A-3 and 2799B-8 of the Public Health Service Act).
Contact: Jane Beyer | 360-725-7043 | Jane.Beyer@oic.wa.gov
1

2
Contact: Jane Beyer | 360-725-7043 | Jane.Beyer@oic.wa.gov

The continuity of care provision is triggered when a provider contract with a health plan
expires or is not renewed. When a contract termination occurs, a health plan must:
•
Notify “continuing care patients” of their right to receive transitional care for 90 days
with the same terms as if the provider were in-network.
•
Provide consumers an opportunity to notify the plan of their need for continuing care.
•
Permit the consumer to use the continuity of care benefit.
A patient is considered a “continuing care patient” if they:
•
Are undergoing a course of treatment for a “serious and complex condition.”
o
A “serious and complex condition” is an acute illness or condition that is serious
enough to require specialized medical treatment to avoid the possibility of death
or permanent harm; or a chronic illness or condition that is life-threatening,
degenerative, potentially disabling or congenital, and requires specialized
medical care over a prolonged period of time.
•
Are receiving care as a hospital inpatient or in another institution, such as a nursing
home or rehabilitation facility.
•
Are scheduled for nonelective surgery (including post-operative care following the
surgery.
•
Are pregnant.
•
Have a terminal illness.
OIC will ensure that the health plans meet their obligations under this continuity of care law. If
you receive any communication from consumers regarding their access to continuing care,
please ask them to file a complaint with OIC.

## Nearby sections

- [WA OIC Advisory Notice (2020) Advisory notice regarding COVID-19 claims](https://www.frixlaw.com/law-library/statutes/WA_OIC_ADV_PROPERTY_CASUALTY_ADVISORY_NOTICE_COVID_19.md)
- [WA OIC Emergency Order (2026) Providing relief to Washington consumers from 2026 wildfires by addressing grace periods for nonpayment of premium and temporarily prohibiting cancellation and nonrenewal of property and automobile policies](https://www.frixlaw.com/law-library/statutes/WA_OIC_EO_WSR_26_16_059.md)
- [WA OIC Emergency Order No. 25-01 Providing relief to Washington consumers from December 2025 atmospheric river and winter weather event](https://www.frixlaw.com/law-library/statutes/WA_OIC_EO_25_01.md)
- [WA OIC Emergency Order No. 26-02 Ordering one-time refill of prescription medications prior to waiting periods, providing a minimum 60-day grace period for payment of premiums, prohibiting cancellations](https://www.frixlaw.com/law-library/statutes/WA_OIC_EO_26_02.md)
- [WA OIC Memorandum (2024-08-30) Aug. 30, 2024, memorandum regarding Aetna and Providence contract negotiations](https://www.frixlaw.com/law-library/statutes/WA_OIC_MEMO_AETNA_PROVIDENCE_BRIEFING_MEMO_AUG_2024.md)
- [WA OIC Technical Assistance Advisory 2015-01 Price Optimization, July 9, 2015](https://www.frixlaw.com/law-library/statutes/WA_OIC_TAA_2015_01.md)
- [WA OIC Technical Assistance Advisory 2016-01 Student Health Plans, March 28, 2016](https://www.frixlaw.com/law-library/statutes/WA_OIC_TAA_2016_01.md)
- [WA OIC Technical Assistance Advisory 2017-01 Two-day Notification Requirement for Security Breaches](https://www.frixlaw.com/law-library/statutes/WA_OIC_TAA_2017_01.md)
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- [WA OIC Technical Assistance Advisory 2018-01 Implementation credits as illegal inducement or rebate](https://www.frixlaw.com/law-library/statutes/WA_OIC_TAA_2018_01.md)
- [WA OIC Technical Assistance Advisory 2021-01 Unlicensed Producer Activity](https://www.frixlaw.com/law-library/statutes/WA_OIC_TAA_2021_01.md)
- [WA OIC Technical Assistance Advisory 2021-02 Commissioner's Universal Life Reserve Valuation Method](https://www.frixlaw.com/law-library/statutes/WA_OIC_TAA_2021_02.md)
- [WA OIC Technical Assistance Advisory 2021-03 Submission of Higher Education Student Health Insurance Plans](https://www.frixlaw.com/law-library/statutes/WA_OIC_TAA_2021_03.md)
- [WA OIC Technical Assistance Advisory 2021-04 Access to Inpatient Substance Use Disorder Treatment Under RCW 48.43.761](https://www.frixlaw.com/law-library/statutes/WA_OIC_TAA_2021_04.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/WA_OIC_MEMO_AETNA_PROVIDENCE_BRIEFING_MEMO_AUG_2024. Check the current official text before relying on it. Not legal advice.
