Capital District Times

The Albany Med Health System and CDPHP have finalized a new two-year contract, ensuring that the health system remains in-network for CDPHP members. This agreement, which extends through 2026, prevents any disruption in care for those insured by CDPHP. Additionally, CDPHP has agreed to reimburse Albany Med for services provided to its members in 2024. The proposal received approval from the Albany Med Health System Board of Directors.

“We are grateful to reach an agreement that preserves our valued patients’ access to the high-quality care they expect and deserve,” stated Dennis P. McKenna, MD, President and CEO of Albany Med Health System. He emphasized the unique services offered by Albany Med hospitals and their critical role in regional healthcare.

In August 2024, CDPHP informed Albany Med of its decision to withhold payments related to the Medicare Wage Index due to a new federal rule. This rule increased Medicare payments to hospitals without a corresponding increase in Medicare Advantage payments received by insurers like CDPHP. By December 2024, $30 million had been withheld by CDPHP under this mandate. As part of the new agreement, these withheld funds will be paid back to Albany Med, leading to the withdrawal of a lawsuit filed against CDPHP.

CDPHP President and CEO Brian O’Grady expressed commitment to covering necessary care costs and collaborating with Albany Med Health System for future access improvements. “As a not-for-profit health plan with deep roots in our community, we are grateful to the Albany Med Health System for coming to the table and arriving at a solution that protects those who matter most – our members and their patients," said O'Grady.

For further information or media inquiries, contact Matt Markham at Albany Med Health System or Natalia Burkart at CDPHP.