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, announced by both organizations Wednesday, keeps Michigan Medicine’s main campus medical center in Ann Arbor, as well as affiliated clinics and physicians, in-network for Blue Cross members beyond the current June 30 contract deadline. While financial details of the deal were not disclosed, the two sides said they will continue meeting in the coming weeks to finalize terms of the deal.

“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,” Blue Cross Blue Shield of Michigan President and CEO Tricia Keith said in a statement.

Michigan Medicine CEO Dr. David Miller said the agreement will ensure continued access to care for patients 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 in a statement.

The agreement follows months of public sparring between the two organizations over reimbursement rates and contract terms. Earlier this year, Michigan Medicine warned patients that Blue Cross coverage could move out of network if a deal was not reached by July 1.

The dispute had caused anxiety among Michigan Medicine patients requiring specialized care, with public calls for both organizations to prioritize patients during negotiations.

In previous public statements, Michigan Medicine accused Blue Cross of proposing reimbursement cuts, while Blue Cross argued the health system was seeking unsustainable increases in payment rates.

The contract dispute would not have affected certain groups, including University of Michigan employees covered through university plans, Medicare Advantage members and Medicaid plans.