Patients react to end of Blue Cross Blue Shield contract dispute

LANSING, Mich. (NEWS 10 LANSING) – Blue Cross Blue Shield of Michigan and Michigan Medicine announced Wednesday they have reached a new long-term contract agreement, keeping the health system in-network for hundreds of thousands of insurance members statewide.

The deal preserves access to Michigan Medicine’s hospitals, clinics and doctors for Blue Cross members. Weeks ago, Blue Cross warned its members to find new doctors as negotiations with Michigan Medicine stalled. The two sides publicly clashed over money, exchanging accusations dealing with pay and reimbursements.

“Our goal was to always to keep the patient at the center of all of those conversations, and I think that we’ve reached an agreement now that allows our patients to receive care,” said Julie Ishak, chief nurse and operations executive for Michigan Medicine.

Ishak said the agreement preserves access for both the local and statewide patients.

“I’m very excited that our patients won’t have any disruption in care moving forward,” Ishak said. “For patients, this means nothing different. They’ll still be able to get the care that they’ve been getting at Michigan Medicine. They’ll still be able to see their same doctors and receive the same excellent nursing care.”

Mike Wilson, a Michigan Medicine patient and Blue Cross Blue Shield member, was one of thousands who spent weeks uncertain about the future of their care.

“It was frustrating enough when you have an insurance company that will like deny a procedure or something like that. But then to go ahead and say, you better find a new doctor…it was educational for us,” Wilson said. “The plan that we have, we can’t leave the state for, and so you’re taking away a large percentage of medical care. And so, … it had to get resolved.”

Wilson said he felt Blue Cross Blue Shield used patients as “pawns”.

“I think three weeks ago, they knew that it was probably going to get settled. It almost seems like they used us as a negotiating tool,” Wilson said.

James Hicks, a Cooley Law professor, said conflicts between insurance companies and hospitals like this happen often, usually over money.

“What it becomes, to some extent, is a game of financial chicken, where both have an incentive in maintaining the relationship. I don’t think either of them necessarily wanted to see the relationship severed,” Hicks said.

He said people all over the state rely on Michigan Medicine care, and if the deal did not go through it would have caused “chaos.”

“Michigan medicine… probably has some relatively deep pockets. So, it’s something they could deal with for a short period of time. But nobody can go without reimbursements for a significant period of time,” Hicks said. “They may have to start laying people off. And that becomes increasingly chaotic, because then once things come back… the normal relationship again, you have to hire people back.”

The two organizations say they will continue meeting over the coming weeks to finalize details ahead of the June 30 contract renewal deadline. Ishak said she is confident the deal will take effect.

The organizations say the details of the contract agreement will not be made public.

Stream News 10 Lansing on your favorite devices! Here’s how to download the News 10+ app on Roku, Fire TV or Apple TV.

Be the first to see the Mid-Michigan headlines you care about – download the News 10+ app and subscribe to our News 10 newsletter and YouTube page to receive the latest local news and weather.