What’s going on with Premera & MultiCare?

After months of negotiations and two temporary contract extensions, Premera Blue Cross and MultiCare Health System have reached an agreement in principle.

According to Premera’s July 28 announcement, MultiCare remains in network while the organizations finalize the details of a new contract. Members can continue seeing MultiCare providers and using MultiCare facilities as they do today. Members and employer groups don’t need to take any action.

Why the agreement matters

MultiCare is a major part of Washington’s health care system. It operates 13 hospitals and more than 300 primary care, urgent care, pediatric and specialty care locations across the Pacific Northwest, according to MultiCare’s organization facts.

Its Washington network includes major hospitals, clinics and medical groups serving the South Puget Sound region, South King County, Thurston County, Spokane, Yakima and surrounding communities. Facilities connected to the Premera contract included Tacoma General Hospital, Mary Bridge Children’s Hospital, Good Samaritan Hospital, Capital Medical Center, Deaconess Hospital, Valley Hospital and Yakima Valley Memorial Hospital. Overlake Medical Center wasn’t included in the contract termination.

The number of potentially affected members was also significant. Premera sent notices about the possible network change to roughly 100,000 households. About 163,000 people with Premera coverage had received care within the MultiCare system during the previous two years, according to reporting from the Washington State Standard.

If MultiCare had left the network, the change could’ve affected much more than hospital visits. Members might have needed to change primary care providers, specialists or facilities. Depending on their plan, they also could’ve faced higher out-of-network costs for nonemergency care.

How the situation started

The negotiations began in late 2025, when MultiCare issued a notice terminating its existing contracts with Premera effective May 31, 2026. Without a new agreement, affected MultiCare hospitals, clinics and employed providers could’ve become out of network beginning June 1.

Premera first published a detailed public notice on April 16. The Premera negotiation update page was then revised several times as the deadline approached and the talks continued.

On April 30, the Washington State Health Care Authority also alerted School Employees Benefits Board members about the possible network change. The state explained that the notice was required before a potential contract termination and that the organizations were still negotiating.

What the two sides were negotiating

The main disagreement involved the rates Premera would pay MultiCare for health care services.

Premera framed the issue around affordability. It said MultiCare’s proposed reimbursement increases would raise costs that could eventually be passed on to employers and families through premiums, deductibles and other health plan expenses.

MultiCare said Premera’s reimbursement rates were among the lowest it received from insurers and weren’t keeping pace with rising workforce, facility and operating costs. MultiCare framed its position around maintaining the staff, services and local access needed to care for patients. The health system maintained a dedicated Premera member update page during the negotiations.

Although they approached the financial questions differently, both organizations said they wanted to avoid disrupting care and reach a long-term agreement.

How the negotiations progressed

• Late 2025: MultiCare issued a contract termination notice, creating a May 31 deadline.
• April 16, 2026: Premera published its initial member notice about the possible network change.
• May 20: Premera released a longer explanation of its position on reimbursement and affordability.
• May 29: The organizations agreed to extend the existing contract through June 30, keeping MultiCare in network while negotiations continued.
• June 26: They announced a second extension through July 31.
• July 28: Premera and MultiCare announced that they’d reached an agreement in principle and were finalizing a new contract.

The temporary extensions mattered because they allowed negotiations to continue without forcing members to move their care during the process.

What members need to know now

The immediate uncertainty has been resolved. MultiCare remains in Premera’s network, and members can continue receiving care without interruption.

• Members can continue seeing their current MultiCare providers.
• Scheduled appointments and procedures can continue under normal plan rules.
• Members don’t need to change doctors because of these negotiations.
• Employers and members don’t need to take any special action.

The organizations are calling this an “agreement in principle,” which means they’re still completing the remaining contract details. The length of the new contract and its reimbursement terms haven’t been released publicly.

Members should continue following their plan’s normal requirements, including referrals or prior authorization when applicable. Anyone with a question about a specific doctor, facility or service can sign in to their Premera account, use the provider search tool or call the customer service number on the back of their member ID card.

A positive outcome for Washington members

The negotiations created real concern because of MultiCare’s size, its regional reach and the number of Premera members who depend on its providers. The agreement in principle gives members and employers the clarity they were waiting for: MultiCare remains in network, care can continue and no action is needed.

Premera has said it will share more information as the organizations finalize the contract.