Michigan Medicine and Blue Cross Blue Shield Reach New Reimbursement Contract

Michigan Medicine and Blue Cross Blue Shield of Michigan say the organizations have reached a new reimbursement contract after a long, tense negotiation.

The deal marks the end of a public spat that threatened roughly 300,000 BCBSM customers with losing access to care at University of Michigan’s health system at the end of June.

Details of the new contract, which is expected to be finalized in the next month, will remain proprietary, the organizations said in a Wednesday morning news release.

Michigan Medicine sought to maintain its place as the preeminent academic health system in the state with the financial ability to recruit the best physicians and nurses. Blue Cross was looking to control ballooning healthcare costs after five years of paying more out in medical claims than premiums collected, leading to a $1.03 billion loss in 2024 and a $246 million loss last year.

The two organizations had been negotiating for a new contract since early last year.

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