Other health insurers would be happy to step in if Blue Cross & Blue Shield of Mississippi decides to end its contracts permanently with 10 of Health Management Associates' hospitals, the Mississippi Association of Health Plans has told the Mississippi Business Journal.
In July, the insurer sent a termination notice to Naples, Fla.-based Health Management informing the company it intended to ax its contracts with the
BCBS recently offered to reinstate four of the hospitals, but Health Management has reportedly rejected the proposal on the grounds that the terms are unacceptable. BCBS has not discussed the terms and conditions of its offer.
During a legislative hearing last month, Health Management claimed BCBS monopolizes the state's healthcare market and is pushing the hospitals to accept lower payments. BCBS testified that Health Management hospitals overcharge for services, and the possible closures are because of the company's in-progress acquisition by Franklin, Tenn.-based Community Health Systems rather than the BCBS contract.
Mississippi Association of Health Plans CEO Jeffrey Drozda told the Journal he expects Health Management will soon be willing to negotiate with other health plan providers. Association members UnitedHealthcare and Cigna have declined to comment on what they would do if BCBS ultimately drops the Health Management hospitals, according to the report.
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