Olympia-area patients who rely on Capital Medical Center won't have to scramble for new providers or face surprise out-of-network bills.
MultiCare Health System and Premera Blue Cross reached a preliminary agreement on Tuesday, July 28, keeping all 13 MultiCare hospitals in Premera's network just days before coverage would have lapsed on Saturday, August 1.
The deal ends eight months of contract negotiations that had prompted Premera to warn roughly 100,000 households statewide that their MultiCare visits could start generating out-of-network charges.
About 163,000 Premera enrollees have filed claims through MultiCare facilities in the past two years, the Washington State Standard reported.
Capital Medical Center, Olympia's only MultiCare hospital, was among the facilities at risk. So were Tacoma General Hospital, Yakima Memorial Hospital, and dozens of primary care and urgent care clinics across the state.
What was at stake
The dispute centered on reimbursement rates. MultiCare argued Premera's payments are "among the lowest" compared to other insurers, while the hospital system faces rising costs and potential federal Medicaid cuts.
Premera countered that MultiCare's proposals would have driven up premiums and out-of-pocket costs for patients and employers.
The insurer cited one example: $17,000 more for a knee replacement under MultiCare's earlier proposals.
Even without a deal, some protections would have applied. Emergency care remains covered in-network under federal law, and a 60-day grace period under Washington state law would have allowed patients to continue seeing MultiCare providers after a contract termination notice.
Bill Akers, Premera's executive vice president of sales and marketing, confirmed the agreement on Wednesday, July 29.
"We appreciate the patience of our members and customers, and the work both organizations invested to reach this point," Akers said in a statement. "We'll share more when the contract is finalized."
MultiCare spokesperson Scott Thompson confirmed the deal separately, saying the health system values its "longstanding partnership with Premera."
What's still unknown
The agreement remains preliminary. Both parties declined to disclose the final reimbursement rates or other contract terms. No timeline has been set for a finalized contract.
The Washington State Health Care Authority updated its announcement page on Wednesday, July 29, confirming the deal and directing state-plan members, including more than 16,000 School Employee Benefits Board enrollees, to Premera's website for current information.
A familiar pattern
This is the second time in two years the two nonprofits have gone to the brink. A similar dispute in May 2024 was resolved before the contract lapsed. MultiCare also settled a separate reimbursement fight with Regence Blue Shield in June 2026.
The negotiations had been ongoing since November 2025, with the previous contract extended twice to buy more time. For now, Olympia-area patients with Premera coverage can continue using Capital Medical Center at in-network rates while the two sides finalize the details.
