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As the state's largest health insurer and Moses Cone Health System engage in a tense public relations battle over a new contract, Blue Cross Blue Shield quietly reached a new deal with Cone's High Point competitor.

Blue Cross announced Friday that it has reached a new three-year deal with High Point Regional Hospital that will allow its members to continue to visit the hospital at network rates.

The deal, which extends a contract that was to expire next year, comes as negotiations between the insurer and Cone have broken down.

"Reasonable hospital contracts, like this one, help us keep care as affordable as possible for our members," Milo Brunick, a Blue Cross vice president, said in a statement. "We appreciate the willingness of the leadership of High Point Regional to negotiate in good faith."

High Point Regional executives were not available to comment on the contract Friday afternoon, hospital spokeswoman Diane Reaves said.

The conflict between Cone and Blue Cross has turned bitterly public, with both taking out advertisements aimed at pressuring the other side.

The dispute hinges on money. The insurer says Cone is seeking an increase in reimbursements that is too steep and would jack up costs for its members. The hospital maintains the increase is necessary to maintain quality care.

Mark Stinneford, a spokesman for Blue Cross, said the insurer has been able to negotiate deals with other hospitals across the state.

Cone officials reject the idea that the hospital is the problem.

Doug Allred, a spokesman for Cone, said Friday that the system has deals with hundreds of other providers. Last month, Cone struck an agreement with UnitedHealthcare, its second-largest insurer behind Blue Cross.

Negotiations came to a standstill in July when Cone announced it was canceling its contract with Blue Cross, effective Nov. 1. Stinneford said the insurer has a policy of not negotiating in that situation.

Allred said Cone is still attempting to reach an agreement with the insurer. He said the hospital sent a new proposal by overnight delivery this week that would tie reimbursement to certain quality measurements. If the goals are reached, Cone would get the amount it's asking for. If not, it wouldn't, he said.

"We'll see if they answer," Allred said.

Cone does not want to rescind the cancellation, Allred said, because it started a clock ticking for when a deal would need to be reached, and deadlines can provide focus.

With time running out, Allred said Cone wants to talk, however that ends up happening. "If we negotiate by overnight courier, so be it," he said.

If the deadline arrives with no deal, Blue Cross members would face the choice of going someplace other than Cone or paying higher out-of-network costs.

Contact Jason Hardin at 373-7021 or at jhardin@news-record.com