After months of fighting that disrupted health care for 11,000 Virginians, hospital system Bon Secours Mercy Health and insurer Anthem Blue Cross Blue Shield have reached an agreement in a dispute over reimbursement rates, the companies announced Friday morning. 

The deal will once again allow patients with Medicare Advantage plans through Anthem to get more favorable in-network prices for care through Bon Secours, which operates numerous hospitals and health care facilities in Richmond, Newport News, Suffolk and Kilmarnock. Since Aug. 1, those patients have been considered out of network for Bon Secours.

This story was reported and written by The Virginia Mercury

It also means an additional 39,000 Virginians with managed Medicaid plans through Anthem won’t lose in-network coverage at Bon Secours beginning Oct. 1. 

“We understand that being out of network/potentially being out of network can be very difficult, and we are pleased that patients with Anthem insurance can now see our physicians and use our hospitals at an in-network cost,” said Mike Lutes, president of Bon Secours Richmond, in a joint statement Friday.  “We sincerely believe that access to quality health care services is vital for our communities. This new agreement protects our patients’ access to compassionate care close to home.”

Anthem Virginia President Monica Schmude said the two companies “worked together to creatively address affordability for our members and the financial needs of an important care provider.” 

“This agreement provides long-term stable access to care at Bon Secours without cost increases for our members and employers,” she said. 

While Bon Secours and Anthem are not disclosing the details of their agreement, citing confidentiality provisions in their contract, their joint statement notes it will ensure continued coverage for both Anthem Medicare Advantage and Medicaid health plan members while extending coverage for Anthem employer-based and Affordable Care Act plans. 

Anthem has agreed to cover any claims from Medicare Advantage patients who received care from Bon Secours during the nearly two-month period it was out of network. Bon Secours has agreed to dismiss a lawsuit it filed against Anthem in Henrico Circuit Court over alleged “slow pay and no-pay tactics” in Virginia. 

The two groups also said they will “form collaborative teams to address claims submissions and payment processes.” 

The messy dispute between the health system and the insurer has largely centered on reimbursement rates, the payments insurance companies make to health care providers to cover the cost of services delivered to patients. Health systems and insurers regularly enter into contracts to set those rates, which determine whether care is considered “in-network” or “out of network” for patients. 

In the most recent fight, Anthem said Bon Secours had asked for double-digit reimbursement rate increases midway through a three-year contract between the two and then, when its request wasn’t met, exercised an option allowing it to end in-network coverage for patients with Medicare Advantage plans through Anthem. 

Bon Secours in turn contended the rates Anthem was paying were “substantially less” than those paid by other insurers and said the insurer was withholding tens of millions of dollars in late and unpaid claims.