Michigan Medicine and Detroit-based insurance provider Blue Cross Blue Shield of Michigan released a joint statement Wednesday morning announcing they have reached a tentative contract agreement. While negotiations to finalize the contract are on-going, both parties have agreed to continue in-network coverage for Michigan Medicine’s academic medical center and other specialized facilities.
Michigan Medicine told BCBSM administrators March 2 that it would cease negotiations for maintaining in-network care if a contract agreement was not reached by the current contract’s June 30 expiration date. Prior to Wednesday’s announcement, BCBSM advised over 250,000 Michigan Medicine patients to seek care from an alternate provider as negotiations with hospital staff stalled.
In the press release for the tentative agreement, Michigan Medicine CEO David Miller wrote he is grateful to allow BCBSM patients to continue receiving care at the state’s top-rated hospital.
“On behalf of our physicians, nurses and all of our team members, we are grateful to have reached an agreement that ensures continued access for our patients and for Blue Cross members across the state to the world-class care available at Michigan Medicine,” Miller wrote.
In the same statement, Tricia A. Keith, president and CEO of BCBSM, wrote the agreement would preserve access to care at the hospital system without significantly raising healthcare costs.
“Blue Cross is pleased to reach this long-term agreement with our partners at Michigan Medicine – ensuring continued access to the system’s medical care services for our members, while advancing the affordability of their care and coverage,” Keith wrote.
The agreement was primarily held up by disagreements over reimbursement rates. Michigan Medicine claimed the insurance provider proposed a 30% rate decrease, while BCBSM claimed the hospital system asked for a 44% increase. Michigan Medicine will continue to meet with BCBSM representatives in coming weeks to finalize the contract’s terms. Final terms of the agreement will not be released to the public.
Summer News Editor Niko Wilson can be reached at nikow@umich.edu.
