Wausau, Wis.-based Aspirus Health’s St. Luke’s Hospital in Duluth, Minn., is set to go out of network with Blue Cross and Blue Shield of Minnesota at the end of the year, according to a patient letter on the hospital’s website.
The organizations have been unable to reach an agreement. In 2026, the letter said the insurer will no longer cover care at Aspirus St. Luke’s Hospital, Aspirus Lake View Hospital in Two Harbors, Minn., Northern Lakes Surgery Center in Mooselake, Minn., other affiliated clinics in Minnesota, as well as locations in Ashland and Superior, Wis.
“Aspirus St. Luke’s is significantly underpaid compared to other health systems in the Duluth market, despite being recognized for providing high-quality care at a lower cost,” the letter said. “Our request of [BCBS of Minnesota] is simple: Fair, market-aligned reimbursement for the care our patients deserve.”
The health system called upon those with employer-provided insurance to contact their benefits manager. It also asked those with Medicare Advantage, Medicaid or a marketplace plan to consider alternative options during open enrollment.
Medicare beneficiaries with supplemental coverage through BCBS of Minnesota will not be impacted.
“At a time when we should be collaborating on solutions for keeping medical costs affordable, Aspirus St. Luke’s is demanding increases that are well above market standards, while their total cost of care is already higher than the state average,” said a BCBS of Minnesota statement shared with Becker’s. “Many Blue Cross members value the care they receive at Aspirus St. Luke’s, and we hope to reach a solution that avoids any unnecessary disruption. At the same time, we must ensure that we are doing everything we can to manage the skyrocketing costs of healthcare services, which directly impact what consumers pay for their health insurance.”
