New deal: Blue Cross Blue Shield to keep Children's Minnesota in-network

- Children’s Minnesota and major health insurance company Blue Cross and Blue Shield of Minnesota have reached an agreement that would keep Children’s Minnesota as an in-network provider for Blue Cross patients.

Minnesota Attorney General Lori Swanson helped broker the new deal between the two parties. According to her office, she acted as the mediator after Children’s and Blue Cross failed to meet the July 5 deadline for a new contract.

RELATED: Children's Minnesota now out-of-network for Blue Cross patients

Earlier this week, Blue Cross said Children’s is one of Minnesota’s most profitable hospital systems, and that Children’s was demanding reimbursement increases that exceed what other in the state have been accepting.

Children’s blamed Blue Cross for the short-lived contract termination, citing the 31 percent cut to Medicaid reimbursement the insurer demanded, and the denial of future rate increases tied to inflation. Children’s said that, on average, they receive about 70 cents for every dollar of cost actually incurred to care for Medicaid patients.

Details on the new contract have not yet been released.

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