ANN ARBOR, Mich. – Contract talks between Blue Cross Blue Shield of Michigan and Michigan Medicine are headed toward a June 30 deadline that could affect patients beginning July 1 if the parties do not reach an agreement.
“I have enough stress. This just capitalizes on that. It’s horrible. I just don’t know how to begin,” said Kelly Shuler.
Shuler’s son Collin, who is developmentally disabled and covered by Blue Cross Blue Shield, has received care at the University of Michigan since he was young. She said the uncertainty is especially worrying because as he gets older, his medical needs are increasing.
“I hope they hear that their decision and their lack of coming to the table negotiating is going to be devastating and catastrophic. It could be life-threatening to many people,” said Shuler.
Blue Cross Blue Shield of Michigan says Michigan Medicine is demanding a 44% increase in what it’s paid over the next five years and warns that such a rise could drive up costs for families and employers.
“Everybody out there watching right now, everybody is frustrated with the cost of their health insurance,” said Andy Hetzel, vice president of communications for Blue Cross Blue Shield of Michigan.
Michigan Medicine flatly denies that characterization, calling Blue Cross’s claim false.
“What we have proposed are really modest. Singular digit increases and even with those increases, Blue Cross would still be paying us well below other insurers in Michigan,” said Luanne Thomas Ewald, chief operating officer for University of Michigan Health Hospitals
Both sides say they are focused on patients while negotiations continue, but families like the Shulers say the dispute has already caused stress and uncertainty.
Michigan Medicine says renewal discussions do not include the hospitals and health centers of UM Health-Sparrow and UM Health-West, nor the physician group U-M Health Partners. The health system also said Medicare Advantage and Medicaid plans, and the University of Michigan Health Plan that covers employees, faculty, staff and retirees, are not part of these negotiations.