BCBSM CEO Dan Loepp: Why we’re supporting Detroit’s grand bargain

Daniel J. Loepp

| 2 min read

Daniel J. Loepp is President and Chief Executive Officer of Blue Cross Blue Shield of Michigan. Mr. Loepp has directed sweeping initiatives and innovations that have led to a historic transformation of BCBSM and health care in Michigan. He played a major role in modernizing the state’s health care delivery system in a process that led to enactment of new laws that transformed BCBSM to become a nonprofit mutual insurance company in January 2014. Mr. Loepp has led BCBSM initiatives to improve health care quality and slow cost increases, saving nearly $1.5 billion through several programs that have garnered national attention and served as models implemented across the country. Under his leadership, Blue Cross Blue Shield of Michigan is helping to revitalize and strengthen Detroit, Grand Rapids and Lansing. In 2011 and 2012, Blue Cross moved 3,000 BCBSM employees into downtown Detroit and the company is one of the largest employers in the city’s Central Business District. In Lansing, BCBSM subsidiary AF Group transformed a long abandoned power plant into a national headquarters. Mr. Loepp has stood by a commitment that BCBSM should be a driving force for good in Michigan’s core cities. It is reflected in BCBSM’s workforce diversity and inclusion efforts, supplier partnerships and community initiatives. In his tenure, BCBSM has been named Corporation of the Year in Finance and Insurance Services nine times by the Michigan Minority Supplier Development Council. The company has also been named one of America’s Top Organizations for Multi-Cultural Business Opportunities by DiversityBusiness.com and ranked five consecutive years as one of the top 10 Regional Companies for diversity by DiversityInc magazine, including being ranked No. 1 for consecutive years in 2015 and 2016. Mr. Loepp was honored as a 2016 recipient of the Edward N. McNamara Goodfellow of the Year Award. He was selected as Michiganian of the Year by The Detroit News in 2013. Mr. Loepp joined Blue Cross in 2000. In 2011, 2012 and 2013, he served as board chair of the Blue Cross and Blue Shield Association (BCBSA), an organization that includes all 36 Blue Cross plans and provides health coverage to more than 106 million Americans.

Blue Cross Blue Shield of Michigan has a long history of standing up for Detroit through thick and thin. We opened our first office here 75 years ago, built our Lafayette Tower headquarters during the 1970s and more recently, relocated more than 4,000 employees from the suburbs to work in our downtown campus. So it gives me great pride to announce our support for the grand bargain to help the city emerge from bankruptcy, support retirees and safeguard the Detroit Institute of Arts. Blue Cross will contribute $2.5 million over 20 years in support of the grand bargain to help minimize cuts to retiree benefits and shield the DIA collection from being sold. All told, BCBSM joined eight other organizations Wednesday in pledging a total of $26.8 million. That helps the DIA reach 80 percent of its commitment to raise $100 million, after the Detroit Three automakers last month also pledged $26 million and adding to private contributions. The $100 million would also add to $195 million pledged from the state government and $366 million from local and national nonprofit foundations, with the deal dependent on final approval in a vote by pensioners and other creditors that wrapped up July 11. Why are we doing this? Simply put, I see it as absolutely critical that we work together to resolve the city’s bankruptcy as quickly as possible while sparing retirees, city services and our richest cultural treasures from bearing the brunt of the cuts. This is about nothing less than ensuring that Detroit retains assets from which to build a bright future. As someone who was born and raised in Detroit, it’s been incredible to watch the positive changes reshaping our city in recent years. The difference on the ground in the eight years since I became CEO is night and day. We cannot risk letting Detroit’s bankruptcy unravel the progress we’ve all worked so hard to achieve. The spirit of collaboration on display from everyone — Gov. Rick Snyder and the Legislature, U.S. District Judge Gerald Rosen, emergency manager Kevyn Orr, Mayor Mike Duggan, the charitable foundations and private employers — is incredible, and it suggests a way forward through many of our city’s current challenges. The grand bargain is good business for a city on the rebound. Blue Cross is proud to support it. Daniel J. Loepp is president and chief executive officer of Blue Cross Blue Shield of Michigan and chairman of the Executive Committee of the Downtown Detroit Partnership.

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Denisha Stokes

Jul 24, 2014 at 6:13pm

I too am a proud employee of Blue Cross Blue Shield of MI. When I saw the email from the organization detailing support in bringing Detroit back it felt like a breath of fresh air. I was born and raised in Detroit and currently reside on the eastside. I have witnessed firsthand the devastation and plight of the neighborhoods over the years and began to feel like there was no hope. Fortunately with the notification that the city would receive $26.8 million from the Blues, I now have much hope and feel that we are on the fast track to becoming a “World Class” city. Thank you Mr. Leopp for your continued support in revitalizing Detroit! Denisha Stokes Customer Service Representative Small and Middle Groups Service Center

Sharese Hogan

Jul 23, 2014 at 2:58pm

“Grand Bargain”. I have always been very proud to say I am a Blues employee, but that email touched my heart in a different way. I was born and raised in Detroit and I have family members and friends who are impacted by the issues that occurred in the city in the past few years and trying to rebuild (day by day). On their behalf, I would like to say thank you for the possibility that they will be able to live better because of your decision to give to Detroit and help the city in their revitalization efforts. This is quite grand Dan - (Mr. Loepp is how I would normally address you, but it didn’t rhyme)! God bless the City of Detroit and BCBSM. PS. I could say so much more, but I know you are very busy – so I hope you have a chance to read this short and sweet note of appreciation.  Proud Employee, Sharese Hogan BCN Field Specialist

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