Blue Cross Blue Shield of Tennessee and Memphis, Tenn.-based Methodist Le Bonheur Healthcare reached an agreement regarding employer-based and marketplace plans, the Memphis Commercial Appeal reported June 14.
Methodist went out of network with BCBS Tennessee in January after the sides were unable to agree to new contracts by Dec. 31. The sides reached an agreement on Medicaid plans in February, but remained out of network for the employer and marketplace plans.
BCBS's Memphis market president Kevin Woods told the news outlet that the disruption was "unfortunate but necessary in order to bring meaningful savings to our members in the form of lower premiums."
Methodist Le Bonheur Healthcare President and CEO Michael Ugwueke told the outlet the system is pleased to have reached an agreement "after months of advocating for the best interests of [its] patients."