Blue Cross Blue Shield of Michigan and Michigan Medicine have reached an agreement that will allow Michigan Medicine centers to remain in-network for those covered by the insurance provider. The deal comes ahead of a June 30 deadline set by the end of the previous agreement.
The stalemate jeopardized healthcare coverage for thousands of people covered by BCBSM, who would have had to pay much higher out-of-network fees to continue to receive care from Michigan Medicine if a deal was not reached.
Tricia A. Keith, BCBSM president & CEO, said in a press release that the deal could promote affordability.
"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 said.
David Miller, University of Michigan executive vice president for medical affairs and Michigan Medicine chief executive officer, said the health system is appreciative that a deal has been reached.
"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 said.
Before the deal, months of gridlock between the parties prompted BCBSM to recommend that 250,000 patients receiving care from Michigan Medicine seek an alternate provider.
During negotiations, Michigan Medicine and BCBSM squabbled over reimbursement rates, the payments Michigan Medicine would receive from BCBSM for medical services. Michigan Medicine claimed the insurance provider proposed a 30% decrease in reimbursement rates, while BCBSM claimed the hospital system asked for a 44% increase. Each party denied the other’s claim.
Officials said both parties will continue to meet over the coming weeks to finalize details of the new agreement. The exact details are not yet public.
