Health Insurance Blog

Blue Cross Blue Shield of Michigan (BCBSM) doesn’t advertise their Medicare Supplement plans because they are such money losers for the company.  BCBSM has a dominant market position with nearly 60% market share, and the second largest Medicare Supplement membership rests with United Healthcare who maintains just under 20% of the market.

Several other health insurance carriers in Michigan are trying to take advantage of the fact that BCBSM’s is not marketing their plans aggressively by launching products of their own in Michigan in 2010.  Priority Health, Aetna, and Blue Care Network (a subsidiary of BCBSM), will all launch Medicare Supplement offerings to Michigan residents in 2010.  In addition, Health Alliance Plan began selling Medicare Supplements in 2008.

More information about Michigan health insurance.

Although health insurance rates continue to rise, affordable health insurance can still be found.  Flexible Blue is an affordable individual health plan offered by Blue Cross Blue Shield of Michigan (BCBSM) for families and individuals who live in Michigan.

Flexible Blue is an HSA qualified health insurance plan, with monthly premiums as low as $52.82 per month for a plan with a 5000 deductible.

Maternity Coverage, and Dental Insurance are optional packages that can be added to your Flexible Blue health insurance plan

More information about Michigan health insurance.

Michigan based Priority Health, plans to increase its presence in the Michigan individual health insurance marketplace, by launching a new suite of products targeting this market segment by the end of the year.

Priority Health Chief Marketing Office Joan Budden is leading the charge.  Budden worked for BCBSM for 24 years including nearly four years heading up their individual health division.

The target market for the expanded foray into the Michigan individual health market will be recent college graduates and sole proprietors.

Currently Blue Cross Blue Shield of Michigan dominates the individual health marketplace in the state.

J.D. Power & Associates rated Health Alliance Plan (HAP) as the top health plan in Michigan for 2009.  Michigan is one of the few “regions” in this study of well over 100 health insurance companies from coast-to-coast, where a Blue Cross and Blue Shield health plan was not recognized as being the top plan.

Health Alliance Plan of Michigan was selected as the top health plan in Michigan and among the top plans in the nation in terms of overall customer experience.

Both, Blue Cross Blue Shield of Michigan and Priority Health were rated as average when compared to the 100+ health plans included in the study and Aetna was rated as below average.

More information about Michigan health insurance.

On Tuesday, Blue Cross Blue Shield of Michigan (BCBSM) announced the launch of a “patient-centered” medical home program (PCMH).  Through this program, BCBSM members who are enrolled in this program will have access to health care from their primary care physicians later at night and on weekends.  More than 1,000 physicians will be participating in the PCMH program making it the largest of its kind in the nation.

In the future, through the use of federal stimulus funds, BCBSM enrolled members will have access to their medical records online and be able to see their most recent medical tests results.

This PCMH program is part of Value Partnerships, a collection of collaborative initiatives among physicians, hospitals and Blue Cross Blue Shield affiliated health plans in Michigan.

More information about Michigan health insurance.

Michigan’s largest health insurance company, Blue Cross Blue Shield of Michigan (BCBSM), is making changes to their individual health insurance portfolio, which in some cases will cost Michigan residents as much as $600 per month while also having to pay higher out of pocket costs.

In the end of last month, BCBSM closed some of their old individual health plans to new members including Blue Value and Care Blue. The new Michigan health insurance plans offered by BCBSM include:  Individual Care Blue Plus, and Flexible Blue II.  In addition, previously offered plans: Young Blue Adult PPO, Option A, and Option C will remain open to new members.

BCBSM appointed insurance agents are unhappy about the product changes as they believe that the pricing will make it much more difficult for them to sell the health plans.  In addition, the commission structure has been revised for the new plans which will compensate them less for enrolling members with severe medical conditions.

More people are shopping for individual health insurance these days.  Golden Rule, says their sales are up 24% over the the past two months.  In addition, ehealthinsurance.com reports that submitted applications were up 18% in the 4Q, over 4Q in 2007.

Along with the increases in individual health insurance shoppers, health insurance rates have increased as well:

• About 80% of Anthem Blue Cross of California’s individual health insurance policy holders will receive double-digit rate increases shorty, and some will receive increases over 30% or more.
• Blue Cross Blue Shield of Michigan is seeking state approval to increase monthly premiums by 56%
• Lifewise raised rates in Washington by 17.6% effective January 1.  In addition, Blue Cross Blue Shield of Oregon raised rates for their Washington state members by nearly 30% on avg.

For perspective, group health insurance premiums increased by roughly 5% in 2008.

New details have been released regarding Blue Cross Blue Shield of Michigan’s plans for rate hikes. The insurer is requesting that the Michigan Office of Financial and Insurance Regulation allow them to increase their premiums. Changes BCBSM is requesting would have an impact on many people

• Individual health insurance policies would be, on average, 56% more expensive.
• An average cost increase of 31% would hit seniors with Medicare supplements.
• Group conversion plans, which are for individuals transitioning out of employer-sponsored coverage, would be set to increase by 42%.

Blue Cross Blue Shield of Michigan (BCBSM) recently announced they may lay off as many as 1,000 employees.  In addition, BCBSM will be seeking double digit rate increases on many of their individual health insurance plans when they file their new rates with the office of financial and insurance regulation.

Rate increases sought will on average be a blistering 55% on individual health plans (which will impact more than 400,000 enrolled members), and 32% for their portfolio of Medicare supplement plans.

BCBSM has stated that the aforementioned health insurance rate increases are necessary due to the Michigan legislatures failure to act on two bills to reform individual health insurance in Michigan.

More information about Michigan health insurance, as well as other health insurers offering individual health plans, as well as health plans for seniors.