Carson Tahoe Hospital announces it won't renew contract with United Healthcare

Payment issues prompted an Aug. 14 announcement that Carson Tahoe Hospital will not renew its contract next year with United Healthcare, the insurer for thousands of state employees living in Western Nevada.

Made in a letter that appears to be from Carson Tahoe President and CEO Michelle Joy and addressed to community members it follows up on a warning from the hospital issued March 1 as first reported in The Record-Courier.

“CTH is committed to remaining your independent local provider of quality healthcare. To do so, we have been forced to make an extremely difficult decision. When our contract with United sunsets on May 30, 2025, we will not renew it and CTH will no longer remain in contract as an ‘in-network’ provider for United,” reads the letter.

Carson Tahoe Health serves Carson City, Douglas, Lyon and Storey counties, but sees patients from as far away as Mammoth Lakes, Calif., and Elko, according to CTH officials.

“As of May 31, 2025, services provided by CTH and its providers will be considered out-of-network under United’s insurance plans. Services provided prior to May 30, 2025 will not be impacted,” the letter says. “After May 31, 2025, community members insured by United may still choose to see CTH providers and seek care at a CTH facilities, but it may be at a greater cost based on the coverage provided by their United insurance plan.

“Rest assured that if you visit CTH for emergency services, federal law requires services be provided and reimbursed at the in-network rate for those with health insurance through an employer, the federal health insurance marketplace, a state-based marketplace or other individual market coverage.”

Concerns about payments from UnitedHealthcare prompted Carson Tahoe Health to send a letter to its customers last winter saying it’s possible the Carson provider would have to stop accepting insurance from the company.

CTH and state officials confirmed they were working to navigate the situation.

“The Office of the Governor and Department of Administration are aware of the contract renewal issues between United Healthcare and Carson Tahoe Health. State leadership have meetings scheduled with both parties to help navigate this issue,” said Elizabeth Ray, spokesperson for Gov. Joe Lombardo.

According to the Carson City Chamber of Commerce, government (state and local) employs over 11,500 in the city.

The largest employers include the Nevada National Guard and state departments of corrections, transportation and employment security. Carson Tahoe Health, a nonprofit, is also one of the city’s largest employers.

United Health Group, which runs United Healthcare, reported revenues of $371.6 billion and earnings from operations of $32.4 billion in 2023, according to a news release from the company.

“Our goal is to utilize the more than nine months remaining on our contract to engage in good-faith negotiation in an effort to renew our relationship so the people we serve have long-term access to Carson Tahoe Health,” said United Healthcare Director of Corporate Communications Cole Manbeck. “We hope they share our commitment toward reaching an agreement.”

On Feb. 21, a United Health Group affiliate, Change Healthcare suffered a cyberattack that affected payments to providers, including pharmacists across the country.