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Blue Cross Blue Shield of Michigan Negotiating with Michigan’s Three Largest Hospitals

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Photo: Eric Seals ~ USA TODAY NETWORK

DETROIT, June 16, 2025 ~ Last year, Blue Cross Blue Shield of Michigan lost $1 billion. Last week, they cut 600 jobs and bought out 500 employees, affecting all areas of BCBSM.

Now, the nonprofit mutual insurance company is attempting to negotiate contracts with the largest hospitals in Michigan: Henry Ford Health, Corewell Health, and Michigan Medicine.

Blue Cross points out that the hospital systems are making profit,” Crain’s Detroit Business Managing Editor Mike Lee told “’JR Morning.” “Henry Ford is almost at $300 million while Corwell is at $200 million. The Blues really need some of that shared back to them.”


PODCAST:

June 16, 2025 ~ Crain’s Detroit Business Managing Editor Mike Lee joins “‘JR Morning” to discuss Blue Cross Blue Shield, the University of Michigan‘s Troy healthcare project receiving a $40 million donation, Michigan‘s education budget facing debate as the House proposes spending cuts, and much more.


(CONTINUED) Blue Cross covers 63% of the market for private health insurance. The buyouts saved the company $94 million, but they are looking to cut $285 million from their budget after saving $200 million last year.

GLP-1 weight-loss drugs have been a big part of the conversation for Blue Cross, as they spent over a billion dollars on them just last year in Michigan. Health insurance premiums have also added to the financial strain. Premiums were raised for some Michigan buyers by 11.5% in 2024 by BCBSM.


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