Children’s Minnesota, Blue Cross settle contract dispute

Published 11:47 pm Saturday, July 8, 2017

MINNEAPOLIS — A Minnesota health insurance company and the state’s largest pediatric hospital system have settled a stalemate affecting about 66,000 patients.

Children’s Minnesota and Eagan-based Blue Cross and Blue Shield of Minnesota announced a new three-year contract agreement Friday. The two sides could not make a deal before Wednesday’s deadline, making Children’s Minnesota an out-of-network provider for Blue Cross patients.

The new agreement restores in-network access to Children’s Minnesota for Blue Cross patients.

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Children’s Minnesota alleged that the health insurer’s proposed payment rates threatened the viability of Children’s. Blue Cross accused Children’s of being an unreasonably expensive health care provider.

Minnesota Attorney General Lori Swanson helped negotiate the final agreement. Details were not released.

Children’s Minnesota has hospitals in Minneapolis and St. Paul and several other facilities in the state.