Anthem and Sentara to Negotiate Contract Renewal
Employers should prepare for potential network shifts as both companies negotiate new terms for 2027 coverage.
Updated on Oct. 16, 2026 in Healthcare
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Anthem and Sentara are currently negotiating a contract renewal that would impact insurance coverage starting January 2027. While current plans remain unchanged through December 31, 2026, Sentara has withdrawn from talks concerning Medicare, Medicaid, and ACA plans.
Why it matters
The dispute centers on a requested 30% cumulative rate increase over three years for commercial plans, which Anthem characterizes as unaffordable. If unresolved, the potential contract lapse could disrupt care continuity for thousands of members across Virginia.
Sentara has requested a 10% annual cost increase for commercial health plans, amounting to a 30% cumulative hike over three years. Negotiations for Medicare, Medicaid, and ACA plans have stalled as the current contracts remain active until the end of the year.
The players
Anthem
A major health insurance provider operating national coverage plans, including Medicare, Medicaid, and ACA-compliant options.
Sentara
An integrated healthcare delivery system and health insurance provider with a large network across Virginia.
The details
The impasse hinges on reimbursement rate negotiations, with Anthem pushing to maintain current cost structures while Sentara seeks significant annual escalations. Anthem has launched a dedicated microsite to guide members through potential transitions of care should the companies fail to agree on new terms. Meanwhile, direct communications are underway to assist members currently undergoing ongoing medical treatment to minimize service disruptions.
Timeline
December 31, 2026: Expiration of current Anthem and Sentara insurance contracts.
January 2027: Effective date for potential new contract terms.
Market Landscape
This dispute mirrors the contract volatility seen in the 2024 healthcare contract renewal disputes between UnitedHealth Group and Optum. It follows a tightening trend of negotiations as providers seek to offset operational costs against insurer efforts to control premium growth.
Business owners in Virginia should monitor these negotiations closely to assess potential impacts on employee health plan renewals and out-of-network costs. If your company relies on specific Sentara providers, consult your benefits administrator to prepare for potential network changes beginning in 2027.
The takeaway
The primary risk for operators is a mid-contract network exit that would complicate employee healthcare coverage. Monitor Anthem's member portal for updates and ensure your human resources team has a contingency plan ready before the December 31 deadline.
Further reading
Learn more about the current Healthcare landscape for employers and providers.
Source note: This article includes information reported by Whsv.
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