Humana and Bay Medical have been working together since 1995, but now Bay is being dropped from Humana’s list of providers.
In apparent retaliation for a four-year-old lawsuit, the military service branch of Humana Health Care is telling its clients in a letter this week that it will no longer cover most visits to Bay Medical Center.
The move affects Humana Tricare Prime policyholders only. It should amount to a one million dollar annual loss in revenue for Bay Medical.
Four years ago Bay and two other hospitals in the region sued Humana Tricare for under-payment of hospital charges. Now, the insurance company is dumping all three hospitals from its approved provider list this week.
Bay Medical Chief Financial Officer Dan Morgan told NewsChannel Seven Humana owes the hospital about three million dollars from the last four years, but Humana says it is bound by Department of Defense reimbursement rates.
CFO Morgan challenged the statement.
“That’s just not true. Tricare and the Department of Defense are not involved in any way.
But, unfortunately for many area soldiers, airmen and sailors Tricare Prime patients will no longer be covered at Bay Medical starting September 19. However, policy holders can still use Bay Medical for emergencies and specialty care, and Human Tricare Life members will remain covered for all visits to the hospital.
Bay Medical officials are trying to work out a new contract. In the meantime, they’ve set up a special number you can call with questions. Call Pam Foster at 747-6037.
If a member of the military or their family covered by Tricare Prime go to Bay Medical after September 19 for routine care, they will have to pay a $300 deductible plus up to 50 percent of the cost of the procedure.