Contract talks between Michigan Medicine and Blue Cross Blue Shield of Michigan are going poorly.
So poorly, in fact, that Michigan Medicine says it may no longer accept Blue Cross-insured patients who are not U of M faculty, staff, dependents, or retirees, if a contract is not settled before July 1s
Michigan Medicine is the University of Michigan's health care system.
Andy Hetzel is a spokesman for Blue Cross. He said Michigan Medicine has demanded a total 44% increase in reimbursements for care over a five-year period. He said that risks raising insurance costs for all Blue Cross plan members.
"Blue Cross finds that to be unaffordable and potentially destabilizing in an economy where people and employers are having more and more difficulty affording health insurance," Hetzel said. "We know that people don't like to be caught in the middle of big companies fighting with each other. So we want to resolve this."
In press releases, Michigan Medicine said it did not agree that it is demanding a 44% increase over the life of the contract, but one path could be "single-digit" increases in reimbursements over five years.
Julie Ishak, chief nursing executive for the health system, told Michigan Public they had also offered to extend the current contract that's in place right now, with "the opportunity to earn more through good outcomes, through high quality, lower cost and better access."
"Even with what Michigan Medicine is proposing, Blue Cross would still be paying well below other insurers in Michigan," Ishak said. "What we're asking from Blue Cross is that they are fair in their reimbursement. We are a unique player in the state. We serve populations that other health systems can't serve. We're the only academic medical center in the state of Michigan."
Michigan Medicine said it is committed to reaching an agreement with the insurer before that deadline.
The contract dispute will not affect Blue Cross plans or coverage for:
- University of Michigan faculty, staff, and dependents
- Retirees with Medicare Advantage plans
- Medicaid plans
- The hospitals and health centers of UM Health-Sparrow and UM Health-West
- The physician group U-M Health Partners.
Editor's note: The University of Michigan holds Michigan Public's broadcast license.
