BCBS Tennessee, Methodist Le Bonheur Healthcare split after failed negotiations

Memphis, Tenn.-based Methodist Le Bonheur Healthcare is out of network with Blue Cross Blue Shield of Tennessee after the sides were unable to reach a new agreement by Dec. 31, the Memphis Commercial Appeal reported Jan. 2. 

Methodist said that it negotiated in good faith, "offering a number of concessions," but alleged that BCBS "continues to make unreasonable demands and refuses our offers," according to the report. 

BCBS alleged that negotiations broke down because the health system is "being paid much higher rates than their peers," according to the report. Methodist denies that claim. 

The split affects those with employer-sponsored health plans through BCBS, including about 14,000 people covered by two City of Memphis plans, according to the report. It also affects many with TennCare — the state's Medicaid program — who have plans administered through BCBS.  

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