TRENTON — Major health insurance carrier, Aetna, and Barnabas Health, the largest hospital network in the state, have signed a new two-year contract that will keep them working together and thousands of patients covered, according to a joint statement today.
Thousands of Medicare and self-insured policy holders received letters this month from Aetna informing them if contract negotiations were not completed by March 1, Barnabas' hospitals and the Barnabas Health Medical Group would be considered out-of-network and far more expensive for policy holders who used them.
State law requires insurance companies to give customers 30 days notice before changing benefits, and the current two-year contract expires at the end of the month, according to spokeswomen for both companies. Letters were sent to 18,000 households who had used a Barnabas facility in 2014, Aetna spokeswoman Susan Millerick said.
"Barnabas Health and Aetna are very pleased to have reached an agreement to extend our contract, avoiding any disruption to the care of our patients who are insured by Aetna," stated John Doll, Senior Vice President of Finance, Barnabas Health. "Barnabas Health is committed to providing the highest quality care to our patients and, by continuing and strengthening our relationship with Aetna, we look forward to offering the finest care to all Aetna subscribers, as we always have done."
Barnabas operates Clara Maass in Bellevile, Jersey City Medical Center, Saint Barnabas Medical Center in Livingston, Monmouth Medical Center in Long Branch, Monmouth Medical Southern Campus in Lakewood, Newark Beth Israel Medical Center, and Community Medical Center in Toms River.
Both companies had expressed optimism deal would be reached before March 1.
"This agreement means that Aetna members will continue to have uninterrupted access to care at all previously participating Barnabas Health facilities and physicians," said Michael Costa, Aetna vice president for the New Jersey Network. "We look forward to continuing to work with Barnabas Health and building on our solid relationship and shared goals of excellent quality and affordable health care."
Aetna serves 1.2 million people in New Jersey.
Susan K. Livio may be reached at slivio@njadvancemedia.com. Follow her on Twitter @SusanKLivio. Find NJ.com Politics on Facebook.