Empire BlueCross and Ellis Medicine will split May 1 unless the two sides can agree to a new contract, the Times Union reported Feb. 10.
The Schenectady, N.Y.-based health system said it will terminate its contract with the payer March 1 if the organizations cannot agree on a new contract.
There is a two-month transition period, after which Empire BlueCross members would be out of network with the health system if no agreement is reached by May 1.
In a statement on its website, the system said it is "simply seeking fair and realistic payments."
"Health insurers need to recognize that the landscape has changed — and changed dramatically — since we last sat down at the negotiating table," Ellis Medicine said on its website.
In a statement to the Times Union, an Empire BlueCross spokesperson said there was no requirement for the health system to issue a termination notice.
"This amounts to a tactic to try and pressure us to agree to unreasonable cost increases, which we will not do," the spokesperson said.
Ellis Medicine operates a 438-bed hospital and multiple clinics. Ellis Hospital is the only hospital in Schenectady County, the Times Union reported.