JACKSON, Miss. (AP) - Mississippi’s largest hospital and its largest private insurer said late Tuesday that they’ve reached an agreement to end their contract dispute.
The University of Mississippi Medical Center and Blue Cross & Blue Shield of Mississippi announced that the medical center’s facilities will continue accepting in-network rates paid by Blue Cross. That means patients insured by Blue Cross won’t be responsible for paying any additional amount the medical center might demand.
In a joint press release, both sides say they wouldn’t discuss the terms of their settlement. The medical center threatened earlier this year to end its Blue Cross contract on June 30, attempting to force the Flowood-based insurer to negotiate better-paying contract terms. But the sides agreed to two extensions through July and August.
The sides reached an agreement after Insurance Commissioner Mike Chaney appointed lawyer John Corlew as a mediator. Chaney said the contract would still be “evergreen,” meaning it will automatically renew, but said he had few other details of the settlement.
“We feel pretty good about what they did,” Chaney told The Associated Press, saying a deal was good for Blue Cross patients who wouldn’t have their medical care disrupted at its main hospital in Jackson, plus smaller hospitals in Grenada and Lexington.
When it announced the potential split, university officials said Blue Cross could unilaterally make changes that cost the hospitals money. Tupelo-based North Mississippi Medical Center sued the insurer in state court in Lee County over similar issues, claiming Blue Cross’ unilateral changes are illegal and costing it more than $1 million a month. That hospital also remains under contract with Blue Cross.
Medical center leaders have long maintained that Blue Cross should pay the university hospitals at a higher rate to recognize the medical center’s expenses of providing services not available elsewhere in the state, but Blue Cross historically refused. During the course of the dispute, the Clarion Ledger explored high fees charged for some services by the medical center
Please read our comment policy before commenting.