Phoenix Children’s walks away from giant health insurance contract
Nov 1, 2024, 3:00 PM

Phoenix Children's is one of the nation's largest pediatric health systems. (David Schacher Photography LLC)
(David Schacher Photography LLC)
Phoenix Children’s, one of the nation’s largest pediatric health systems, turned down an $80 million offer from one of Arizona’s largest health insurers in a heated contract dispute.
Blue Cross and Blue Shield Arizona, or AZ Blue, had been negotiating with Phoenix Children’s since January on a contract to provide health insurance coverage to patients at the pediatric health system across Arizona by an Oct. 30 deadline.
The contract expired and a new agreement is unlikely, according to a statement sent to the Business Journal on Oct. 31 from Phoenix Children’s, which said the health system turned down the insurer’s offer of $80 million.
In it’s response, Blue Cross Blue Shield officials were direct: “We’re baffled. Phoenix Children’s just turned down an $80 million raise.”
However, Phoenix Children’s said that offer is closer to $43 million when accounting for several factors, including wrongful denials.
This story is posted in partnership with Phoenix Business Journal. Click to read the full story.