Associated Press

Blue Cross Blue Shield of North Dakota says it won't be cutting payments this year to hospitals and other medical providers.

The Fargo health insurer had notified health care providers to prepare for a possible reduction in this year's payments by 2.5 percent, starting Aug. 1.

Blues President Mike Unhjem now says the company is dropping the plan, even though he says it will put Blue Cross Blue Shield in a deeper financial hole.

Unhjem says taking back the planned reductions should help ensure better access to health care in North Dakota.

Medical providers have complained about the reductions. Unhjem says it became apparent that going ahead with the cuts might have sent some providers over the financial brink.