- Lehigh Valley Health Network (LVHN) has announced its intention to terminate its contracts with UnitedHealthcare, one of the nation’s largest insurers, in early 2026.
- The health network, part of Jefferson Health, alleges that UnitedHealthcare has been underpaying them by as much as 40% less than their negotiated rates for over two years.
- UnitedHealthcare has fired back, claiming LVHN is using “misleading” statements as a negotiation tactic after demanding a nearly 30% price hike.
- The dispute places thousands of patients in 10 Pennsylvania counties at risk of losing in-network coverage, potentially leading to significantly higher out-of-pocket medical costs.
Contract Termination Threatens Patient Coverage
Lehigh Valley Health Network (LVHN), a major provider in Pennsylvania and part of Jefferson Health, announced it is moving to end its contracts with UnitedHealthcare. The termination is set to take effect on January 25, 2026, for Medicare Advantage patients and April 25, 2026, for those with commercial insurance, sending a shockwave through the region’s healthcare landscape.
Allegations of Unfair Payments
In a statement, Jefferson Health officials accused the insurance giant of failing to honor its agreements. Dr. Edmund Pribitkin, Chief Physician Executive at Jefferson Health, asserted that the relationship has been strained for years due to UnitedHealthcare’s payment practices.
“For more than two years, Lehigh Valley Health Network… has been working to establish an equitable relationship with UnitedHealthcare,” Dr. Pribitkin stated. “Unfortunately, our efforts have been met with delays and obstacles as United seeks to continue its unfair payment practices.”
Pribitkin claimed that United has not paid the fully negotiated rates since 2021, resulting in “reimbursement that is 40% less than expected.”
UnitedHealthcare Fires Back
UnitedHealthcare vehemently denies the allegations, portraying LVHN’s announcement as a public pressure tactic. A spokesperson for the insurer stated that LVHN is making “misleading and potentially false public statements” in the middle of the critical Medicare Annual Enrollment period.
A Stalled Negotiation
According to United, they delivered a proposal to LVHN in April but have yet to receive a counteroffer. The insurer claims the health system’s last proposal, from December 2024, included an unsustainable “near 30% price hike in the first year.”
“We ask Lehigh Valley to join us at the negotiating table and work toward an agreement that is affordable rather than using consumers as leverage to significantly drive up health care costs for Pennsylvanians and local companies,” the UnitedHealthcare statement read.
Thousands of Patients Caught in the Middle
The contract termination impacts a vast network, including 15 hospitals and hundreds of doctors’ offices across 10 counties in Pennsylvania. Should the two parties fail to reach an agreement, thousands of patients with UnitedHealthcare plans will be forced to either pay much higher out-of-network rates for their care at LVHN facilities or find new, in-network medical providers. This move comes on the heels of another major provider, Johns Hopkins Medicine, also ending its contract negotiations with UnitedHealthcare last month, signaling a troubling trend for the insurer.
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