We have very unfortunate news. Michigan Medicine, who you may know as the University of Michigan hospital system or health system, has notified us that their southeast Michigan facilities and physicians will no longer accept your Blue Cross Blue Shield of Michigan or Blue Care Network health insurance effective July 1, 2026. Medicare Advantage members are not impacted. We know this news can be very upsetting to Blue Cross members who have had trusted and longstanding ties to Michigan Medicine, or who are receiving care within the health system. We want you to understand what is happening and assure you that we are ready to help you.
We have been negotiating new payment terms with Michigan Medicine for many months, which will dictate how much people and employers with Blue Cross insurance will pay for services there. After several rounds of negotiations, Michigan Medicine is demanding a 44% increase in payment over the term of a new contract. We oppose this because of the destabilizing impact it will have on the affordability of health care and health insurance for families and employers.
Blue Cross wants our members to have access to the excellent care that the talented doctors, nurses and staff that the Michigan Medicine system provides. Our latest proposal to Michigan Medicine pays more — not less — for services. Blue Cross continues to work diligently in our negotiations to maintain affordable health insurance for our members and access to care at your medical facilities and with your physicians of choice. Our payment proposals to Michigan Medicine are fair and reasonable, providing increases that account for the incremental costs every business is experiencing, while providing additional payments focused on quality outcomes for patients. We remain hopeful that we will successfully negotiate a new payment contract before July 1, 2026. In the meantime, we are ready to help you find alternative care providers and plan for your care.
While we continue to work toward a resolution, below are links to resources to assist you:
Visit this Updates page at bcbsm.com/updates for the latest information about our contract negotiations with Michigan Medicine hospitals.