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January – February 2020
A message from Steve Anderson
Blueprint for Affordability will help transform how health care is managed and paid for in Michigan
 Over the past three years, I’ve written a great deal in this newsletter about what Blue Cross Blue Shield of Michigan is doing to hold down the high cost of health care. Now we’re kicking off our most ambitious initiative to date, thanks to the help and support of our health care providers. It’s called Blueprint for Affordability, and it represents the next generation of our value-based reimbursement programs.
Blueprint for Affordability will help us better control health care costs by having leading health organizations in Michigan share in the financial risk associated with managing the health of their patients. Providers who successfully manage the health and cost of care for their patients and meet quality standards will share in the savings generated. Providers who don’t do this will share in the cost. It’s a big switch from the old “fee-for-service” model that rewarded volume, not value.
As you’ve heard me say many times before, health care costs, if they continue their current trend, are unsustainable. Our members and customers are demanding that we take bold action to reduce the cost of care while maintaining quality standards. Through Blueprint for Affordability, we hope to address their concerns and continue our ongoing journey toward high-quality, affordable health care.
We announced in December that the following health care provider organizations were the first to sign Blueprint for Affordability reimbursement contracts with Blue Cross Blue Shield of Michigan:
- Ascension Michigan
- Henry Ford Health System
- Michigan Medicine (University of Michigan)
- Oakland Southfield Physicians
- The Physician Alliance
- Trinity Health – Michigan (Saint Joseph Mercy Health System, Mercy Health, Mercy Health Physician Partners, IHA and St. Joe's Medical Group)
- United Physicians
We applaud these organizations for their willingness to embrace change. They represent roughly 30% of our total commercial PPO and Medicare Advantage market. We look forward to other organizations joining the effort in the coming year.
As Michigan’s leading health insurer, we’ve taken many steps already to keep medical premiums as low as possible and reduce the cost of prescription drugs. So far, Blue Cross has prevented more than $2.2 billion in medical costs through Value Partnerships, a collection of value-based programs that are led by our hospital and physician partners. This has translated to premium reductions for small group customers over the past four years and moderation of rates in the individual and Medicare Advantage markets.
We invite all our participating physicians and hospitals to join us on this journey to making health care more affordable.
For more information
Steve Anderson is vice president of Hospital Contracting and Network Administration. |
