Aspirus St. Luke’s Calls for Fair Reimbursement from Blue Cross Blue Shield of Minnesota

Aspirus Health is in negotiations with Blue Cross Blue Shield of Minnesota (BCBSMN) for a fair and equitable agreement that adequately covers the cost of the excellent care Aspirus provides to patients.

BCBSMN has characterized these negotiations simply as a request for higher rates. The reality is that Aspirus St. Luke’s is significantly underpaid compared to other health systems in the Duluth market despite being recognized for providing high-quality care at a lower cost.

Publicly available data and independent third-party analysis show BCBSMN reimburses Aspirus at rates far lower than it offers other providers in the market. That is unfair and unsustainable. At the same time, BCBSMN is dramatically raising premiums on individual and small group health plans. From 2024 to 2025, BCBSMN raised those premiums by more than 11 percent. For 2026, it has proposed increases of more than 16 percent.

Aspirus’ request is simple: Fair, market-aligned reimbursement for the care its patients deserve. Aspirus St. Luke’s is striving to expand services, improve outcomes and control costs for patients across the region. But to achieve this, reimbursement must at least cover inflationary costs and align with fair market standards.

While Aspirus remains committed to negotiating in good faith, BCBSMN’s recent negotiation tactics do not reflect this same positive spirit. BCBSMN’s tactics include providing Aspirus only hours to respond to offers, retracting previously provided figures, and moving to remove Aspirus from networks when Aspirus did not accept its terms. These tactics do not serve the community’s best interests.

Without a new agreement in place, Aspirus St. Luke’s Hospital, Aspirus Lake View Hospital, Northern Lakes Surgery Center, affiliated Aspirus clinics in Minnesota, and Aspirus care sites in Ashland and Superior, Wisconsin, will be considered out-of-network for patients with BCBSMN coverage after December 31, 2025.

Aspirus hopes to reach an agreement with BCBSMN that allows patients with BCBSMN coverage to continue receiving care at their current Aspirus care sites of choice with their current, trusted doctors.

Aspirus is dedicated to serving the people of Duluth and the surrounding communities with compassion and excellence. BCBSMN must do its part by paying fairly for the value Aspirus brings, ensuring that together they protect access to care for the community.

For more information and updates about negotiations with BCBSMN, please visit www.slhduluth.com/local-access.