Blue Cross Blue Shield and Michigan Medicine strike deal

Michigan Medicine strikes deal with Blue Cross Blue Shield

With more than a month to spare, Michigan Medicine in Ann Arbor and Blue Cross Blue Shield of Michigan have agreed to a long-term deal that will keep the hospital within the provider's network. 

(FOX 2) - For months, families like Courtney Abdel-Hak's worried about the health care they had secured for their son would go away because of an impasse between Blue Cross Blue Shield of Michigan and Michigan Medicine.

The endocrinologist they found at the hospital was one of the best in the state. So what would happen if they could no longer use him as an option?

On May 27, those fears were eased thanks to the two parties reaching a new long-term deal.

Big picture view:

After months of negotiations, both the insurance provider and the hospital struck an agreement.

It happened just over a month before the old deal was set to expire. The agreement has families all over the state breathing a sigh of relief.

Both groups will continue meeting over the next few weeks to finalize the details of the agreement. As part of the deal, Michigan Medicine will maintain their in-network status.

Executives from both sides announced the agreement in a news release on Wednesday.

Local perspective:

Abdel-Hak's 2-year-old son Amir was diagnosed with a chronic illness and Type 1 Diabetes at just 17 months old. They credit Michigan Medicine with saving his life.

The idea of trying to find another provider has been a stressful experience.

"We started looking — we couldn’t find anyone that would provide him with adequate care. No one would match up to the level that U of M is giving us," she said. "Knowing we won’t have to change just makes me really happy. It makes me sad that we were even put in that position like that in the first place, but definitely a peace of mind."

What they're saying:

"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, President & CEO of BCBSM.

"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., Executive Vice President for Medical Affairs for University of Michigan and Chief Executive Officer of Michigan Medicine.

Between the lines:

"There are a lot of patients that seek their care at Michigan Medicine because there are some programs we have that Michigan Medicine is the only place you can get that type of care and for many of them, they face the concern of out-of-network rates, which are higher, more costly for patients and families or having to leave the state altogether and we are excited that we will continue to be in network with Blue Cross Blue Shield and they will not have to leave the state and continue to receive their care at Michigan Medicine," said Dr. Scott Flanders.