Sentara Health ends contract with Anthem over reimbursement rates

August 1, 2026 - 09:57

HAMPTON ROADS, Va. - Sentara Health has officially ended its contract with Anthem Blue Cross Blue Shield after the two sides failed to reach an agreement on reimbursement rates. The decision comes after Sentara requested a 6.2 percent increase in what the insurer pays for medical services, a figure Anthem rejected as too high.

The breakdown in negotiations means that patients covered by Anthem will no longer have in-network access to Sentara's hospitals, outpatient centers, and physician practices across Virginia and northeastern North Carolina. That includes major facilities like Sentara Norfolk General Hospital and Sentara Virginia Beach General Hospital.

For Anthem members, the change takes effect immediately for new admissions and scheduled procedures. Those currently receiving ongoing care, such as cancer treatments or prenatal services, may qualify for transitional care coverage, but only for a limited time. Sentara officials say they tried to avoid this outcome but felt the requested rate increase was necessary to keep up with rising labor, supply, and operational costs.

Anthem, for its part, argues that Sentara's demands would have driven up premiums for employers and individuals. The insurer says it remains open to future talks but has already begun steering members to other hospitals in the region, including Bon Secours and Riverside Health System. Patients are being urged to check their coverage options before scheduling any non-emergency care. The dispute leaves thousands of policyholders in a difficult spot, scrambling to find new providers or pay higher out-of-pocket costs.