University of Maine System to Switch to Anthem Amid Anthem-Northern Light Contract Dispute

The University of Maine System plans to transition its employee health insurance coverage from Cigna to Anthem Blue Cross and Blue Shield starting January 1, despite an ongoing contract dispute between Anthem and Northern Light Health, the state's second-largest health system.

Approximately 15 percent of university employees receive at least some medical services from Northern Light, raising concerns among employee unions about potential out-of-network coverage issues if the Anthem-Northern Light agreement is not finalized. The university system initiated a competitive bidding process over ten months, selecting Anthem based on factors including network size, premium cost containment, service usability, and existing contracts with other public employers in Maine. Anthem plans to offer substantial premium savings to employees under family plans compared to the previous Cigna coverage. However, union leaders have expressed reservations, stressing that the change could materially alter negotiated benefits if Anthem and Northern Light fail to reach a contract agreement by the transition date.

Negotiations between Anthem and Northern Light have been protracted, requiring a deadline extension, with state officials mediating to resolve disputes essential for maintaining patient access within networks. The university system remains in close communication with both parties and believes there is a strong possibility of resolution before the new insurance plan takes effect. Unions reserve the right to initiate impact bargaining to address changes in benefits and working conditions resulting from the insurer switch. This development highlights complexities in insurer-provider contracting dynamics affecting public sector employees' health benefits in Maine.