Bon Secours Mercy Health has resolved a reimbursement dispute with Elevance Health subsidiary Anthem Blue Cross and Blue Shield and agreed to a new five-year contract, the companies announced Friday.
The Cincinnati-based nonprofit Catholic health system filed a lawsuit against Anthem in Virginia state court last month, alleging the insurer owed $93 million in unpaid, reduced and denied claims, but is withdrawing its legal complaint, according to a news release. The companies wrestled over contract terms for months before reaching an agreement to restore the health system to the insurer's provider network until 2028.
"This new agreement protects our patients’ access to compassionate care close to home, Bon Secours Mercy Health Chief Operating Officer Don Kline said in the news release.
The companies declined to provide details about the deal, which applies to commercial, Medicaid and Medicare Advantage policies in Kentucky, Ohio and Virginia.
Bon Secours Mercy Health and Anthem will "form collaborative teams to address claims submissions and payment processes," the companies said in the news release. Anthem will also reimburse the health system for care provided to its Medicare Advantage enrollees since the previous contract expired on Aug. 1 in Kentucky and Virginia and on July 1 in Ohio.
"This agreement provides long-term, stable access to care at Bon Secours Mercy Health without cost increases for our members and employers,” Anthem Virginia President Monica Schmude said in the news release.