Michigan Medicine, the health care system operated by the University of Michigan in Ann Arbor, says it will be locking non-Medicare/Medicaid Blue Cross Blue Shield of Michigan (BCBSM) members out of its hospitals, outpatient centers, and physicians starting July 1 following a reported 44 percent payment increase request.
U-M says BCBSM’s statement that it requested a 44 percent increase is false. U-M did not specify what it requested in terms of an increase. Blue Cross says it rejects public statements by Michigan Medicine that its proposals in negotiations would amount to a 30 percent reduction in payment.
“It’s disappointing that Michigan Medicine has put its patients in the middle of our negotiations,” says Andrew Hetzel, vice president for corporate communications at BCBSM. “Causing people to worry about their health care is no way to win an argument over money.
“Our negotiations with Michigan Medicine have centered on the system’s demands for significantly more money — even though they are a wealthy system that already charges the highest prices in the state,” Hetzel says. “Blue Cross’ desire is to maintain the affordability of care and coverage — and we desire to partner with Michigan Medicine to those ends.
“We have respectfully presented offers to Michigan Medicine that pay them more money via sustainable annual rate increases beyond what they charge today — but they continue to demand too much more. Families and employers are struggling with high health insurance costs. Our next contract must be responsive to the affordability concerns of the people and employers who pay for health care. This is our goal – to arrive at a reasonable, responsible and affordable contract with Michigan Medicine that maintains access to care for our members.”
According to U-M officials in a statement, “Unfortunately, this unsustainable offer forced U-M Health to provide BCBSM with a required 120-day notice setting a June 30 deadline by which the organizations must reach a new agreement.”
The health system reiterated in the notice that it’s committed to reaching an agreement with the insurer before that deadline.
U-M says its decision to set a deadline comes after “repeated efforts to arrive at an agreement that includes fair reimbursement for the highly complex health care that the state’s only academic health system provides to patients with BCBSM insurance.”
“Our priority is — and always will be — our patients,” says Dr. David Miller, CEO of Michigan Medicine and executive vice president for medical affairs at U-M. “We are advocating for an agreement that allows our nurses, physicians, and care teams to maintain the high-quality, specialized care patients depend on, while we also ensure that care is accessible and affordable for patients across the state of Michigan.”
 members out of its hospitals, outpatient centers, and physicians starting July 1 following a reported 44 percent payment increase request.){kind=link}