MINNEAPOLIS (WCCO) — Staff at Children’s Minnesota continue contract negotiations with Blue Cross Blue Shield of Minnesota.

The hospital says the insurance company gave them an impossible ultimatum. Either accept a 31 percent cut to the rates Children’s is paid through Medicaid, or give up future inflationary adjustments rates paid through private insurance.

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Blue Cross disputes the hospital’s claims, saying the 31 percent cut comes from outdated contract terms proposed in January. Blue Cross also said their current offer would mean they would pay Children’s the same rates for Medicaid services as the state of Minnesota.

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One mother says she’s worried for kids who might not be insured when they need follow up appointments after recent surgeries.

“It’s for those kids and for the families who are finding out today and tomorrow and the next day, that they are going to have a lifelong need for services for their children that this needs to come to a resolution and we look to all of you for your for your support in finding a way to bring this to a close,” Stacey Jenkins said.

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Unless an agreement is reached Children’s will be considered an out-of-network provider to more than 66,000 Blue Cross patients on July 5.