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Anthem Blue Cross Negotiations with Scripps Health: Scripps Has Chosen to Leave Our San Diego Care Provider Network

December 31, 2024
January 2025
 
Scripps Health has chosen to leave Anthem’s care provider network effective January 1, 2025. We want Scripps doctors and facilities to return to our network and we remain in discussions to reach an agreement that offers affordable prices for the employers and consumers we serve—but we cannot agree to the extreme price increases Scripps seeks to charge patients covered by Anthem.

The decision by Scripps to leave Anthem’s network could affect the out-of-pocket obligations for our members who receive non-emergency care at Scripps doctors or facilities. Using hospitals, facilities and physicians that are out-of-network will lead to higher costs for members, which is why we always encourage them to seek care from providers that are in our care provider network.
 
For Our Members Currently Receiving Care at Scripps Health
Our members are our priority. We know this is especially concerning for our members currently receiving care at Scripps and we are here to help. If you were receiving treatment for a serious or complex condition prior to January 1, 2025, please contact our Member Service Center at the number on your Anthem ID card. You may be able to continue your care at Scripps for a limited time if you are receiving certain types of care.
 
Anthem’s Network Includes Every Other San Diego Area Health System
We have coordinated with our other San Diego care provider network partners to ensure our members have access to high quality care at other health facilities, including UC San Diego Health, Sharp HealthCare, Palomar Medical Center and others. Our network includes hundreds of other physicians, specialists, and ancillary care providers in the San Diego area. Members may call our service center at the number on the back of their ID card for assistance finding alternative in-network care providers.
 
Here’s Why This Happened
For months, we’ve been working in good faith with Scripps to keep their doctors and hospitals in our network. Already one of the most expensive health systems in California, Scripps continues to seek to significantly increase the prices they charge patients covered by Anthem health plans. As just one example, Scripps is already reimbursed more than ten times what Medicare reimburses for a routine emergency room visit. Despite these already-inflated costs, Scripps continues to demand price increases at rates two times higher than trend benchmarks set by the State of California Office of Health Care Affordability (OCHA).
 
These higher costs would lead to substantially higher out-of-pocket costs, deductibles, and copayments for our members. The price hikes would impact local employers and small businesses as well. Over 96% of Anthem’s payments to Scripps are for members who are covered by employers that pay directly for their employees’ health care bills. This means that our community’s employers would feel the full burden of these price increases – hampering their ability to raise pay, offer benefits, and hire new workers.
 
How Scripps’ price increases would impact your costs in just four years:
 
 
sutter infographic
 
 
 
Our Offer: Fair Payment Increases That Keep Care Affordable and Sustainable
We firmly believe our care providers should be reimbursed fairly, and that is reflected in our offers to Scripps during these negotiations. Anthem has offered reasonable, above-inflation payment increases that keep health care affordable for our members. Our offers, which are consistent with payment increases in place with other California health systems, also align with the State of California’s new spending targets, and more than cover the cost of providing quality care at their facilities.
 
We have also offered opportunities for Scripps to earn millions of dollars in additional revenue through quality-of-care incentives.
 
Scripps has rejected these offers, instead choosing to exit Anthem’s network.
 
Collaboration Is the Key
We continue to work collaboratively with other hospital systems and doctors to improve health outcomes and moderate cost trends in California. Health care providers and health plans working together is crucial to building a better, more affordable health system. In fact, we’ve recently entered into new multi-year contract agreements with some of the state’s largest systems like Sutter Health System; Dignity Health System, Providence Health System, and many others.
 
Reining in skyrocketing prices charged for care is a first step in any serious effort to relieve the pressure that soaring health care costs place on individuals and working families. We are asking Scripps Health to work with us before prices become unsustainable, not just for working families and their employers, but for California’s health care system overall.

Negotiations Continue
We continue to work in good faith to negotiate a new agreement for Scripps to remain in our network that includes reasonable payment increases that fairly compensate Scripps for the care they provide while also keeping care accessible and affordable for those we serve in San Diego County.
 
Frequently Asked Questions
 
What should I do if I need emergency care from Scripps?
Emergency services are not affected. Members should always call 9-1-1 or go to the nearest emergency room in a life-threatening situation, even if that emergency room is not in our network. Coverage will be provided according to the member’s policy benefits and in-network cost shares.
 
I received a letter saying I can continue to see my Scripps Health doctor until February 2. Is this true?
Yes, some Anthem HMO members can continue to go to their Scripps Health doctors until February 2. These members have been notified and can call the member services number on their Anthem member ID card for more information.
 
If a member does not have access to an alternate participating facility or a particular service is not available elsewhere, can he/she go to a Scripps hospital?
Anthem understands the importance of timely access to care. If a service is not available at an alternate participating provider, members may request an out-of-network referral by contacting Customer Service. Requests will be reviewed on a case-by-case basis pursuant to Anthem’s Out-Of-Network Referral Policy. When an out-of-network referral is approved by Anthem, the member’s in-network benefit levels will apply. However, because Scripps is no longer in Anthem’s provider network as of January 1, 2025, members may be responsible for higher out-of-pocket expenses, depending on their benefit plan. Every effort will be made to assist members in understanding the potential financial consequences of the decision to seek services from a non-participating provider.
 
Where can I go for information and updates?
We will update this website as negotiations continue. Anthem members may also login to the Sydney Health app or www.anthem.com/ca/ or call the Member Service Center at the number on their ID card for help finding alternative doctors and hospitals.