Blue Cross | Blue Shield | Blue Care Network of Michigan

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Hospital and Physician Update

July – August 2019

A message from Todd Van Tol, senior vice president, Health Care Value
Wanted: Partners willing to embrace change

Todd Van TolWhen it comes to health care, we’re facing an affordability crisis. In my previous position with Health Plan Business, I was responsible for our group customer business and witnessed firsthand how group customers wrestle with providing high-quality health care to employees in an atmosphere of rising costs. Our current path is not sustainable.

The cost of care is outpacing inflation, with average employer and employee premiums rising faster than other parts of running a business — and at levels well beyond wage growth. Here are two statistics about the cost of health care in the U.S. to consider:

  • The annual average cost per person is $10,348.
  • Projections suggest that health care spending will grow 5 to 6% per year over the next several years.

Blue Cross Blue Shield of Michigan has already taken many steps to help address the cost issue and increase health care value for our members. In fact, our cost trend is among the lowest experienced by Blue plans across the country.

We owe much of our cost-management success to our relationship with our provider partners, including hospitals, physicians, pharmacists and other caregivers. Our Physician Group Incentive Program is a powerful platform for collaborating with providers to improve systems of care and lower costs. My colleague, Robert Coscione, vice president of Provider Network Evaluation and Management, who was featured in this newsletter recently, calls it the pre-eminent program of its type in the nation. I couldn’t agree more.

We’re also rolling out Blueprint for Affordability, the next generation of our value-based reimbursement programs for health care providers. At the heart of Blueprint are agreements where providers will:

  • Share in the savings generated when they successfully manage the cost of care for their patients and meet quality standards
  • Share in the cost when they don’t succeed

We believe this program is a real game changer that will transform the way health care is delivered in Michigan. Additionally, we expect it to make a significant dent in the cost of care in the state and alleviate much of the strain our customers and members are experiencing.

Of course, none of these gains is possible without the help and support of our provider partners. I understand the importance of developing strong, productive relationships with hospital executives, physicians and other network providers.

I also recognize the role Blue Cross must play in supporting our providers during this time of change. We must do a better job of sharing data, facilitating health information exchange and giving members access to tools that will help them better understand their plan and improve their health. In short, we must be more responsive to the needs of providers and members.

We need providers who are willing to work closely with us during this time of change, who want to embrace the challenges that change presents. Because we all know that change is imperative if we want to stem the tide of rising health care costs. Can we count on you to partner with us on this journey?

I welcome your feedback at TVanTol@bcbsm.com.

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