CareFirst BlueCross BlueShield and Anne Arundel Medical Center have reached a settlement after the hospital threatened to terminate its contract with the health insurance company.

Anne Arundel in July notified the insurer of its plans to end its contract with CareFirst, effective Oct. 1, for physician services and Jan. 1, 2018, for hospital services. The insurer in its response said that the hospital was seeking "very high fee increases" and that it was negotiating a settlement.

In an Aug. 4 joint statement, the two parties said they will ink a new, three-year contract to be effective Sept. 1. However, they did not disclose any details about the new agreement.

CareFirst BlueCross BlueShield is the shared business name of CareFirst Inc. units CareFirst of Maryland Inc. and Group Hospitalization & Medical Services Inc.