Blue Cross Blue Shield of Michigan a national leader in evolution away from “fee-for-service” provider reimbursement

by bcbsm

| 2 min read

DETROIT, April 12, 2016 – Comparing against national data for 2015 published today by a health care industry payment reform coalition, Blue Cross Blue Shield of Michigan is far-and-away outpacing the coalition’s member health plans in evolving provider reimbursement away from the old fee-for-service system, toward structures where population-based health management and quality patient outcomes are major factors in payment. A national survey released today by the Health Care Transformation Task Force reports that among HCTTF-member health plans, 38 percent of payments now flow through “value-based” reimbursement arrangements. In Michigan, Blue Cross has 85 percent of its reimbursement flowing through value-based payment models. Blue Cross is a member of the HCTTF. “Value-based payment reform is advancing steadily across the nation. It’s gratifying to see our work here in Michigan powering this wave of change,” said Dr. David Share, senior vice president for Value Partnerships at Blue Cross. “Over the past decade, we have purposely moved away from fee-for-service toward a value-based reimbursement system, in which payment is tie-barred to population value. Our focus is achieving significant savings through higher quality of care provided to every patient at high levels of efficiency. Achieving and sharing the money we save back with providers through our reimbursement models rewards value and transforms systems of care. This means better, more affordable health care for people.” “Most hospitals in Michigan have a deep commitment to quality and efficiency, and have supported our desire to have their reimbursement reflect that commitment,” said Susan Barkell, senior vice president for Health Care Value at Blue Cross. “It’s good to see leading hospitals coming together with Blue Cross to support our efforts to improve population health.” For information on Blue Cross' Value Partnerships initiatives, visit Blue Cross Blue Shield of Michigan, a nonprofit mutual insurance company, is an independent licensee of the Blue Cross and Blue Shield Association. BCBSM provides and administers health benefits to more than 4.5 million members residing in Michigan in addition to employees of Michigan-headquartered companies who reside outside the state. For more company information, visit and Photo Credit: Galeria del Ministerio de Defensa del Perú

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