BCBS, Michigan Medicine reach deal to avoid coverage disruption

(The Center Square) – After months of negotiations, Blue Cross Blue Shield of Michigan and Michigan Medicine announced they have reached a long-term contract agreement.

The deal ensures Michigan Medicine’s affiliated hospitals, clinics and physicians will remain in Blue Cross Blue Shield of Michigan’s provider network, avoiding a disruption that could have impacted nearly 300,000 patients statewide.

The agreement comes just weeks before the organizations’ current contract was set to expire July 1.

“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,” said Tricia Keith, president and CEO of Blue Cross Blue Shield of Michigan, in a joint press release with Michigan Medicine.

David Miller, executive vice president for medical affairs for the University of Michigan and chief executive officer of Michigan Medicine, said the agreement preserves patient access to care across the state.

“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.

The two organizations said they will continue meeting in the coming weeks to finalize details of the agreement ahead of the June 30 renewal date.

The financial terms of the contract will remain confidential, though negotiations have become increasingly public in recent months, with both sides accusing the other of demanding unsustainable reimbursement changes.

Michigan Medicine includes the University of Michigan’s academic medical center in Ann Arbor as well as affiliated hospitals and specialty centers across the state, including University of Michigan Health-West and University of Michigan-Sparrow.

Blue Cross Blue Shield of Michigan provides health coverage to more than 4.7 million members, making it the state’s largest health insurer.