Blue Cross Reaches Contract Deal to Keep St. Luke’s Hospital in Network

Blue Cross and Blue Shield of Minnesota has reached a new contract agreement with Aspirus Health, ensuring St. Luke’s Hospital in Duluth remains in its provider network for the upcoming year. This resolution prevents disruption for about 50,000 Blue Cross Medicare Advantage members who rely on Aspirus Health facilities, including St. Luke’s Hospital, Lake View Hospital, a surgery center, and affiliated clinics. The contract dispute first emerged in August and was part of a broader period of volatility during the Medicare open enrollment season in Minnesota, which saw reduced health plan options and increased costs for beneficiaries. The disagreement centered on provider payment rates, with Blue Cross contending that Aspirus’s demands were excessively high, while Aspirus argued the insurer's offers were inadequate. This settlement follows other high-profile negotiations in Minnesota’s healthcare market, including unresolved disputes between Fairview Health Services and UnitedHealthcare impacting both Medicare Advantage and commercial employer coverage for tens of thousands of patients. The latest agreement underscores the ongoing complexities in provider-insurer contracts that affect network stability, access to care, and cost management. Blue Cross’s Chief Medical Officer highlighted the insurer’s commitment to balancing high-quality care access with fair pricing in reaching the deal with Aspirus.