Local hospital and insurance company re-negotiating rates

JOHNSON CITY, Tenn. - A local health system is trying to find common ground when it comes to rates with an insurance company.

The negotiations are between Blue Cross Blue Shield and Mountain States Health Alliance.

Officials with Mountain States tell us this is common to re-negotiate rates with insurance companies and some kind of agreement is expected.

But with the recent health care reform and cuts to Medicare, there are challenges in these talks.

"In the face of all those fragile reimbursement cuts, the commercial insurance companies are coming at us not with negotiating increases, they're demanding cuts to our existing reimbursement rates," said Tony Benton, MSHA Vice President of Marketing and Communications.

We've learned the deadline for an agreement with Blue Cross Blue Shield is June 1st.

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