The University of Pennsylvania health System (UPHS) and Independent Blue Cross (IBX) announced recently that they had reached a long-term agreement on reimbursement rates.
The agreement, which takes effect on July 1, 2025, is part of a new contract renewal. Penn Medicine cares for approximately 400,000 patients covered by IBX each year in the tri-state area. The renewed contract cements the two organizations’ work together improve health outcomes for patients. In past years, the organizations have worked together to tackle persistent health disparities through efforts to accelerate health equity and eliminate race-based medicine, officials said.
“Our relationship with IBX has allowed us to try new things that have set new standards for our field, like our work together to substantially cut down on preventable readmissions. At a time when both health systems and insurers are under financial pressure, we are energized to be able to continue our solid partnership caring for those who depend on both our organizations each day,” UPHS CEO Kevin B. Mahoney said. “Over the years, we’ve held one another accountable, transformed the way we provide care, and most importantly, we’ve worked together to make the communities we serve healthier.”
The agreements is the fourth consecutive contract renewal between the two organizations and represents a strategic partnership to transform the regional health marketplace, officials said. The collaboration began in 2012.
“As we reflect on our collaboration with Penn Medicine, it is clear that our partnership is driving transformation by demonstrating that providers and payers can work collaboratively to improve health care for all,” Gregory E. Deavens, president and CEO of Independence Blue Cross said. “From pioneering value-based care models to addressing health inequities together, we have consistently pushed the boundaries of what is possible. This early agreement on rates reassures IBX members that our collaboration with Penn Medicine is enduring, providing continued access to exceptional medical care when they need it most.”