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Blue Cross Blue Shield, CHI Health end contract dispute

After nearly a year of being out-of-network, CHI Health physicians and hospitals will return to the Blue Cross Blue Shield network next month.

CHI and Blue Cross Blue Shield of Nebraska announced Thursday evening that they've reached a two-year contract agreement. Last summer, contract talks broke down between the insurance carrier and CHI's parent company, UniNet.

Blue Cross Blue Shield said CHI's costs were 10 to 30 percent higher than other providers. CHI wanted a value-based model. CHI physicians and hospitals became out-of-network for Blue Cross Blue Shield members, with some exceptions.

In a news release, CHI Health CEO Dr. Cliff Robertson says the new agreement is fee-for-service and not value-based, which is what the health provider was seeking. But he says there are opportunities for a value-added model to be part of future discussions.

Blue Cross Blue Shield of Nebraska says on their website that they're satisfied with the new agreements, and wanted a model that was “fair and beneficial” to policy holders.

CHI Health doctors and hospitals will return to the Blue Cross Blue Shield network July 15th. The agreements apply to Blue Cross Blue Shield members with Network BLUE plans.