A dispute between Michigan Medicine and Blue Cross Blue Shield could leave about 300,000 people looking for a new health care provider.
Unless a deal is reached, the Michigan Health System will leave the Blue Cross network July 1st.
Blue Cross says Michigan Medicine is demanding a 44% increase in reimbursements. Corporate Communications Vice President Andy Hetzel says that’s unreasonable.
“If we allow prices to go well beyond what is reasonable and affordable, people’s health insurance costs become highly pressured, more people drop health insurance and employers can’t provide it.”
The U-M Health System says Blue Cross wants to cut payments by 30%. Operations Executive Julie Ishak says that’s unsustainable.
“Our ask is to extend the current contract and give us the opportunity to earn more through quality access and lower cost of care.”
Negotiators will meet again next week. Both sides say they are hoping to strike a deal before the end of June.
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