New York (CNN Business) General Motors agreed Thursday to reinstate all health insurance coverage for its nearly 50,000 striking hourly workers, a sign that the 11-day old strike by the United Auto Workers union might be nearing its end.

GM GM said a letter from Scott Sandefur, the company's lead negotiator, to union chief negotiator Terry Dittes on Thursday about the health care reinstatement. "Throughout this negotiation,has said that our number one focus was on the well-being of our employees. That remains the case today,"said a letter from Scott Sandefur, the company's lead negotiator, to union chief negotiator Terry Dittes on Thursday about the health care reinstatement.

Sandefur acknowledged there was uncertainty among employees as to whether they had insurance, despite the union agreeing to pay premiums during the strike.

"Given this confusion, GM has chosen to work with our providers to keep all benefits fully in place for striking hourly employees, so they have no disruption to their medical care," Sandefur said.

The agreement on health care comes as the two sides resumed negotiations Thursday to reach a tentative agreement that would end the walkout.

Read More