Mountain States Health Alliance Nears Expiration of BlueCross BlueShield Contract

The contract between BlueCross BlueShield of Tennessee and the 13 hospitals of Johnson City, Tenn.-based Mountain States Health Alliance is due to expire at the end of May, with no renewal agreement yet finalized.

Both parties are working to find common ground, but a letter BlueCross sent to 27,000 policyholders didn't give much hope that an agreement would be reached before the deadline.

MSHA spokesman Tony Benton said the system's profit margin was less than 1 percent last year and faces double-digit rate reductions from BlueCross' contract proposal, according to a report by the Bristol Herald Courier.

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