Blue Cross, Michigan Medicine contract fight: What patients should know
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March 7, 2026, 11:55 a.m. ET
About 300,000 patients are at risk of losing access to their doctors as a June 30 deadline to reach a contract deal between Blue Cross Blue Shield of Michigan and Michigan Medicine looms.
If no deal is reached, hundreds of thousands of patients will no longer have in-network insurance coverage with Michigan Medicine-affiliated providers, clinics, health centers and hospitals.
University of Michigan students with Blue Cross plans would be affected, and unable to get in-network treatment at University Health & Counseling clinics on campus.
Blue Cross Blue Shield of Michigan said some Michigan Medicine patients qualify for a 90-day extension of in-network benefits.
Shockwaves are rippling through health care circles in southeastern Michigan as the news that a contract dispute between University of Michigan Health and Blue Cross Blue Shield of Michigan could bump roughly 300,000 patients out of network with Michigan Medicine providers, clinics, health centers and hospitals as soon as July 1.
Unless negotiations result in a new, five-year contract by June 30, hundreds of thousands of people could be hunting for new primary care physicians and specialists.
It’s sparked questions about whether other metro Detroit hospital systems will have the capacity to absorb that influx of patients — many of whom have rare diseases, chronic and critical conditions — and what it might mean for wait times for new appointments and medical services in this corner of the Mitten, and more.
Here’s what you need to know:
Who will lose in-network access on July 1?
Without a deal by June 30, Michigan Medicine patients with commercial Blue Cross Blue Shield of Michigan insurance plans and Blue Care Network coverage will have to pay out-of-network prices starting July 1 if they seek nonemergency care at the following hospitals and health centers affiliated with U-M Health’s academic medical center:
University Hospital in Ann Arbor
C.S. Mott Children’s Hospital in Ann Arbor
Von Voigtlander Women’s Hospital in Ann Arbor
D. Dan and Betty Kahn Health Care Pavilion and Frankel Cardiovascular Center in Ann Arbor
W.K. Kellogg Eye Center in Ann Arbor
Associated physicians and outpatient clinics, including the Briarwood Medical Group, the Livonia Center for Specialty Care, the West Ann Arbor Health Center, the Canton Health Center, the Chelsea Health Center, the Detroit Riverview Center, the Livonia Health Center, the Northville Health Center and the Ypsilanti Health Center.
Medicare Advantage and Medicaid plans are not part of the contract negotiations, nor is the U-M Health Plan that covers employees, faculty, staff, and retirees. Those plans are not affected.
The dispute also does not affect U-M Health-Sparrow and U-M Health-West hospital systems, or the physician group U-M Health Partners.
Are U‑M students covered at campus health clinics?
Unless an agreement is reached, students who have commercial Blue Care Network or Blue Cross Blue Shield plans will have to seek treatment elsewhere or pay for out-of-network care, said Gabby Abel, public relations manager for Blue Cross Blue Shield of Michigan.
“As part of Michigan Medicine’s choice to terminate their contract with Blue Cross, University of Michigan students with a BCBSM or BCN plan will be directly impacted,” Abel said. “If we are unable to come to a compromise, unfortunately, U-M students would lose in-network access to University Health & Counseling (UHC) services effective July 1.
“We recognize how frustrating this can be, especially for busy students, and we are ready to help them find alternative care. Students with questions can receive help by calling the number on the back of their member ID card.”
What if I have a medical emergency in Ann Arbor? Can I go to a Michigan Medicine hospital?
Yes. Emergency medical care will continue to be covered in-network for Blue Cross plan holders.
“Even if we are unable to reach an agreement by July 1, emergency care will always be covered as in-network,” said Mary Masson, senior director of public relations for Michigan Medicine in a March 4 email message to the Detroit Free Press.
Who qualifies for continuity‑of‑care extensions?
Some Blue Cross members will be eligible for a 90-day “Continuity of Care” extension of in-network coverage, Abel said.
Examples of patients who would qualify for that are people with cancer, terminal illness, cardiovascular disease, diabetes, autoimmune disorders, Alzheimer’s disease, those who have had an organ transplant, or are pregnant.
Blue Cross also will extend in-network coverage for 90 days for members who have a serious and complex condition, which is defined as:
An acute illness serious enough to require specialized medical treatment to avoid the reasonable possibility of death or permanent harm.
A chronic illness or condition that is life-threatening, degenerative, potentially disabling or congenital and requires specialized medical care over a prolonged period of time.
Others also may qualify, such as patients who are:
Undergoing a course of institutional or inpatient care from the provider or facility.
Scheduled to undergo nonelective surgery from the provider, including receipt of postoperative care.
Pregnant and undergoing a course of treatment for the pregnancy from the provider or facility.
Is or was determined to be terminally ill (as determined under section 1861(dd)(3)(A) of the Social Security Act) and is receiving treatment for this illness.
If you think you might qualify for continuity of care services, ask your medical provider to initiate a continuity of care request or call the number on the back of your member ID card to ask for assistance.
“One of the reasons we began member notifications about Michigan Medicine’s decision to terminate is because the hospital system cares for people with very complex, life-threatening conditions and we wanted to give those people as much notice as possible,” Blue Cross’ Abel said in an email message to the Free Press.
“However, after those 90 days end the provider or facility would then be out-of-network and alternative care would need to be arranged. As we continue to negotiate with Michigan Medicine, we encourage members to not wait it out, and to find care with an alternate in-network provider or facility to ensure the least amount of disruption as possible.”
What does out‑of‑network mean for costs?
If patients are treated at a hospital, clinic or by a medical provider who isn’t operating under a negotiated contract with their health insurance plan, then it is considered “out-of-network” care, which usually comes at a much higher cost.
How much higher is dependent on a number of factors, Abel said.
“Usually, members using out-of-network providers or facilities can expect to pay double the usual in-network cost,” she said. “For members with an HMO plan, they do not have any out-of-network benefits and would absorb 100% of the cost. For members with PPO coverage, they would pay their out-of-network benefit, which is usually double.”
If negotiations fail, is it a qualifying life event so I can change my insurance plan?
Insurance companies consider some life events significant enough to allow participants to change their policies midway through a plan year. They’re called qualifying life events, and can include a marriage or divorce, being fired or laid off from your job and having a child.
Abel said, however, that if contract negotiations with Michigan Medicine fail, this would not trigger a special enrollment period for members.
“Michigan Medicine choosing to leave the BCBSM/BCN network is not a qualifying life event,” she said.
Can other Michigan hospitals manage a surge of displaced patients?
It’s uncertain. Already, patients in the region report that it can take months to schedule appointments for certain services or to see specialty health care providers. The state also is in the midst of a primary care physician shortage.
Shelly Weiss Friedberg, director of public relations for Tenet Healthcare, which owns the Detroit Medical Center, said it is ready to accept Michigan Medicine patients who could lose in-network care.
“The DMC has capacity and the ability to expand access to our services to meet the needs of patients in our community,” she said. “In addition, BCBS plan members will continue to have access to the highly specialized pediatric care offered at Children’s Hospital of Michigan with our high acuity capabilities.”
Corewell Health told the Free Press it’s also preparing to do its part.
“Contracts between health care systems and insurance providers can be challenging,” said spokesperson Mark Geary. “Corewell Health and other systems will always do whatever we can to help patients navigate insurance paperwork to provide high quality care to patients. ”
Trinity Health Michigan spokesperson Bobby Maldonado issued the following statement:
“Trinity Health Michigan regularly manages changes in patient volume, and we are committed to timely and high-quality access for anyone seeking care,” he said. “With more than 400 site
