Children's Minnesota, BCBS agree on contract after terminating deal
Neither provider nor payer gave terms of new contract which had fallen apart last week over reimbursement rate dispute.
Children's Minnesota and Blue Cross and Blue Shield of Minnesota have come to an agreement on a contract, having announced a termination of their contract last week over differences in the rate of reimbursement.
Neither provider nor payer gave the terms of their new contract, which is effective retroactively to July 1.
[Also: Children's Minnesota, BCBS in that state, end contract negotiations]
"This new agreement allows Children's to sustainably continue doing what we have always done: provide the best possible care for children and their families," said Bob Bonar, CFO at Children's Minnesota.
"Blue Cross is very pleased that our members now have clarity on the network status of Children's and can continue to see their doctors," said Michael Guyette, president and CEO at Blue Cross. "Throughout this process, Blue Cross stressed the importance of payers and providers working together to improve the delivery and financing of health care in Minnesota."
The previous contract expired on Tuesday, July 4.
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As of July 5, Children's Minnesota was no longer an in-network provider for Blue Cross and Blue Shield of Minnesota members.
Children's Minnesota said Blue Cross and Blue Shield of Minnesota had demanded a 31 percent cut to Medicaid reimbursement, and threatened no future inflationary rate increases for care to those with private insurance.
Blue Cross and Blue Shield of Minnesota in turn charged Children's Minnesota with demanding increases in reimbursement rates which exceeded what other hospitals and physicians in the state have been accepting.
Blue Cross had offered Children's a contract with above-market prices for 2017, the insurer said. Blue Cross said Minnesota residents had numerous other area options for pediatric care.
Twitter: @SusanJMorse
