Blue Cross Blue Shield, Michigan Medicine reach contract agreement in coverage dispute

DETROIT (FOX 2) - After a standoff between Blue Cross Blue Shield of Michigan and Michigan Medicine that threatened coverage for many patients, a contract agreement has been reached.

The two entities that have been sparring over money during contract negotiations said Wednesday that an agreement was reached ahead of the June 30 deadline. Michigan Medicine wanted more from Blue Cross due to rising costs, while the insurance company argued that the health care provider's proposition was too expensive.

Had an agreement not been reached by the deadline, more than 200,000 could have had their health insurance coverage impacted.

"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 A. Keith, the president and CEO of BCBSM. 

The contract is expected to be finalized in the coming weeks.

"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," said David Miller, M.D., the Executive Vice President for Medical Affairs for University of Michigan and Chief Executive Officer of Michigan Medicine. 

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