BREMERTON — In the wake of last year’s failed negotiations on medical reimbursements, Regence BlueShield and Harrison Medical Center have returned to the table and are expected to finalize a new contract soon.

The agreement would place thousands of Regence customers back in-network with Harrison, meaning lower medical costs for patients.

“We are sort of on the goal line right now,” said Scott Thompson of CHI Franciscan Health, with which Harrison Medical Center is affiliated. “Hopefully it will be done soon,” he said.

The negotiations would bring members of Regence BlueShield insurance programs back into network with Harrison, equating to lower medical costs for patients.

“We are in discussion and hope to come to an agreement soon,” said Jennifer Morgan, spokesperson for Regence BlueShield. “With this conversation happening, Harrison could be back in network for those members.”

Harrison has been considered out-of-network for Regence customers since contract negotiations broke down in August, both companies citing disagreements over rates.

“Harrison hasn’t been an in-network provider since Aug. 22,” Morgan said. “The agreement that they requested, reimbursement rates were not inline with what was reasonable. We are always working for members to keep things affordable.”

She added, “Regence remains committed to providing our members with the best possible service at an affordable cost and that’s what these negotiations are about.”

Thompson also said that the discussions are about keeping costs affordable.

“Both sides wanted to have an agreement,” Thompson said. “It really benefits Harrison and Regence to have a contract where members can get in-network services. The difficult part is that the patients and members get caught in the middle.”

Thompson noted that a contract termination is a “last resort when you can’t reach an agreement,” and that Harrison sought to get competitive rates in order to keep costs low and provide up-to-date technology, medical test and pay for staff.

“Both sides continued talking after the break. We appreciate that Regence was willing to come back to the table,” he said.

The break between Harrison and Regence came after continued talks throughout 2014. The previous contract ran out and was extended as talks continued, but ultimately, the two companies could not come to an agreement.

The end of the contract took Regence customers out of Harrison’s network. Emergency services were still covered at in-network prices, however.

“What that means for Regence customers is that they will incur higher out-of-pocket costs,” Thompson said of being out of contract.

To stay in-network, Regence customers traveled to hospitals out of Kitsap, such as St. Anthony in Gig Harbor or St. Joseph Medical Center in Tacoma.

Harrison, however, began a discount program for Regence members in the interim of contract negotiations, to help with costs that rose due to out-of-network status.

“To alleviate that financial burden, we initiated a discount program for Regence customers for service after Aug. 22,” Thompson said.

That discount program initially ran through 2014, and was extended for the month of January 2015. It has been extended again until Feb. 14.

“The idea behind it was to alleviate the out-of-pocket costs that folks experience by having Harrison be out-of-network,” Thompson said.

Thompson estimated there might be more than 8,500 Regence members in Kitsap County.

Harrison had previously mailed a letter to Regence members after the August break, stating that Harrison’s affiliate, Franciscan Health System, negotiated on behalf of Harrison for several months on a new contract.

“Regence refused to negotiate in good faith and offered a decrease from our current level of reimbursement for our medical services which is fiscally unsustainable long term,” the letter stated.

Regence sent out a letter to its members stating Harrison was “unwilling to accept a fair and reasonable rate increase offered by Regence. We could not accept their demands for a reimbursement increase of 15 percent, which would substantially raise costs for not only our members, but all residents of Kitsap County.”

Thompson and Morgan said a conclusion to negotiations is expected soon, and could happen after the Bremerton Patriot’s press deadline Feb. 11. Check BremertonPatriot.com for an updated story.