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Blue Cross Blue Shield Agrees to Deal with Michigan Medicine
The agreement keeps Michigan Medicine centers in network for about 300,000 Blue Cross members after weeks of talks over reimbursement rates.
- Blue Cross Blue Shield of Michigan and Michigan Medicine announced Wednesday they have reached a tentative contract agreement, maintaining in-network status for the Ann Arbor-based health system's academic medical center and affiliated facilities beyond the June 30 deadline.
- Months of public sparring over reimbursement rates preceded the deal, with Michigan Medicine saying Blue Cross sought a 30% reduction while the insurer claimed the health system demanded a 44% increase, threatening access for about 300,000 members.
- Michigan Medicine cited significant reimbursement disparities, claiming 43% lower inpatient and 98% lower outpatient rates from Blue Cross than comparable Big Ten academic medical programs like Northwestern Medicine and UCLA Health.
- Neither organization will disclose final contract terms, with both pledging to meet in coming weeks to finalize the five-year agreement as Blue Cross President and CEO Tricia Keith said she is pleased to ensure continued access while advancing affordability.
- The agreement averts potential coverage disruption for more than 200,000 patients who faced out-of-network costs without a deal by June 30, though Medicare Advantage and Medicaid plans remain outside the contract negotiations.
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Blue Cross and Michigan Medicine reach deal on new contract
Blue Cross Blue Shield of Michigan and Michigan Medicine announced a a new long-term contract agreement, ending a months-long standoff that had raised concerns among patients about losing access to in-network healthcare at University of Michigan medical facilities. The agreement,…
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Total News Sources20
Leaning Left3Leaning Right3Center8Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
L 22%
C 57%
R 21%
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