University of Michigan interim President Domenico Grasso accused Blue Cross Blue Shield of Michigan on Thursday of not telling the full truth about a dispute between the health insurance giant and the university’s medical center.
During the Thursday Board of Regents meeting, Grasso said he wanted to “set the record straight” about the dispute, which might affect more than 300,000 patients who have Blue Cross insurance and see providers at Michigan Medicine. Grasso said Michigan Medicine was seeking a continuation of its current contract, with any additional payments based on “clear and quantifiable performance outcomes.”
The parties must secure a new contract by July 1, the interim leader said.
“These are patients who not only want to come here for their care, but in many cases, cannot get that care they need elsewhere,” Grasso said. “Despite Blue Cross’s claims, we want to assure our community members that the current contract remains in effect and patients should keep their appointments as scheduled.”
Blue Cross disputed Grasso’s comments in a Thursday evening emailed statement to The Detroit News.
“Michigan Medicine moved to terminate their contract in a letter dated March 2, effectively locking our members out of their system starting July 1 if a new contract is not signed by that time,” said Andy Hetzel, vice president of corporate communications for BCBSM. “This effectively put patients in the middle of our negotiations ― which we do not support. Blue Cross has not misrepresented any of the facts relative to our negotiations, which are continuing.
“Blue Cross is determined to reach a new contract with Michigan Medicine before the system’s intended termination date ― but we need that contract to reflect the affordability concerns of millions of Michigan residents who are struggling with their health insurance costs.”
During the board meeting, Dr. David Miller, CEO of Michigan Medicine and executive vice president for medical affairs at the University of Michigan, added that having access to Michigan Medicine was crucial for its patients.
“Many of the people I treat are facing complex diagnoses and complex cancer treatment decisions,” Miller said. “They travel from across the state to come to Michigan Medicine because they need highly specialized care and the expertise of our teams.”
Blue Cross officials said earlier this month that if a new contract isn’t completed by July 1, it would prevent Blue Cross and Blue Care Network members from receiving non-emergency care in the system because it can’t pay for care if a hospital or doctor isn’t under contract.
The insurer said Michigan Medicine is “demanding” a 44% price hike over the contract term and contended that it is already the highest-paid system in the state.
“Health insurance premiums go higher when the cost of health care goes higher,” Hetzel said in a prior statement. “With families and employers in Michigan struggling to pay for health insurance, along with other necessities, Blue Cross cannot allow the University of Michigan Health System to raise the cost of its health care services by 44 percent. People and employers need health care to be affordable. A 44 percent increase in payment isn’t affordable.”
Michigan Medicine spokeswoman Mary Masson said earlier this month the insurer was seeking a 30% reduction in reimbursement for care at Michigan Medicine, and this was “unacceptable” for the “world-class care” Michigan Medicine provides.
satwood@detroitnews.com
This article originally appeared on The Detroit News: Blue Cross’ contract fight claims disputed by UM interim president
Reporting by Sarah Atwood, The Detroit News / The Detroit News
USA TODAY Network via Reuters Connect
