Navigation Links
Examination by National Expert Shows Blue Cross Blue Shield of Michigan's Social Mission Contributions Totaled at Least $391 Million in 2007

LANSING, Jan. 30 /PRNewswire/ -- A report issued today by Avalere Health, an independent and nationally renowned health policy consultancy based in Washington, D.C., confirms that Blue Cross Blue Shield of Michigan contributed at least $391 million to the people of Michigan in 2007 through an array of initiatives that further BCBSM's mission to improve access to health coverage at affordable prices. The $391 million in "social mission" contributions far exceed the $80 million in state and local tax exemptions provided to nonprofit BCBSM under state law.

"Using conservative numbers, and not counting the additional impacts of being insurer of last resort, this examination affirms the depth and breadth of Blue Cross Blue Shield's unique mission," said Andrew Hetzel, BCBSM vice president, corporate communications. "This study confirms that the state's investment of tax free status for BCBSM is returning significant dividends to the people of Michigan -- perhaps far exceeding those delivered in any other state by an independent nonprofit Blues plan.

"This examination makes a clear case for maintaining the Blues' historic role under Public Act 350 of 1980, while also creating a fair system to guarantee access to health insurance that the entire insurance industry is responsible for maintaining for the long-term stability of Michigan's individual insurance market," Hetzel said.

The lead author of Avalere Health's report, Bob Atlas, a senior vice president with Avalere, also examined Pennsylvania's negotiated arrangement with its Blue Cross Blue Shield plan to contribute back to the state in a variety of programs as a condition of its nonprofit status. Avalere's findings reveal that BCBSM contributes 38 percent above the Pennsylvania benchmark.
The examination covers several initiatives unique to BCBSM, including:

-- $15.5 million in costs incurred by participating in public programs,

primarily the MIChild program covering more than 28,000 lower-income


-- $5 million in charitable giving, including community health initiatives

and $1 million toward funding free health care clinics across the state

-- $17.2 million in knowledge dissemination and health care quality

programs affecting the state's population at large, rather than just

BCBSM subscribers

-- $133.8 million in costs due to shortfalls in premiums for individual

products because of a regulatory and rate-setting structure unique to


-- $141.7 million in mandated subsidization of Medicare supplemental and

group conversion coverage

-- $10.8 million to support hospital charity care

-- $66.7 million to assist hospitals in covering "bad debt"

"The return to Michigan taxpayers during 2007 from Blue Cross Blue Shield of Michigan's total social mission spending was at least 488 percent or nearly five times more than its tax exemption," said Atlas. "The Blues spent $391 million in social mission activities versus only $80 million in forgone taxes."

BCBSM commissioned Avalere Health to conduct the examination in December 2007. The report follows up on prior examinations commissioned by BCBSM and conducted by Atlas in 2005 and 2006 through the Ann Arbor-based Altarum Institute.

"Mr. Atlas's examinations of BCBSM are long-standing and continuing, and we have full confidence both in the independence of his approach and his knowledge of the company's finances and statutory obligations," Hetzel said. "It is important to our board and management, and the state, that we regularly confirm that the company is fulfilling its social mission. Mr. Atlas's examinations are one way we do this."

For a copy of the Avalere Health report, go to .

Blue Cross Blue Shield of Michigan is nonprofit and an independent licensee of the Blue Cross and Blue Shield Association.

SOURCE Blue Cross Blue Shield of Michigan
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. NJHA: State Report Provides Thorough Examination of Hospital Fiscal Woes
2. Father and Daughter From Tanzania Receive Their First Medical Examination in Newport Beach
3. American Journal of Disaster Medicine Accepted for Inclusion into The National Library of Medicines MEDLINE Database and may now be Accessed Through the PUBMED Website or the MEDLARS System
4. 91 Percent of Oncologists Polled Report Adverse Patient Events as Result of CMS National Coverage Decision on ESAs
5. Onmark Launches Integrated Quality(TM) Program to Help Physicians Succeed With National Quality Initiatives
6. Inspector Hector(R), National Childrens Oral Health Foundation Kick Off Events for National Childrens Dental Health Month
7. Regions Hospital Receives National Quality Awards
8. Crdentia Appoints Charlie Mayhone to Director of Operations for its National Travel Division and Charlotte, North Carolina Market
9. American Red Cross Launches 2008 National Public Service Advertising Campaign
10. Philip Morris International Spin-off Should Spur Nations to Take Urgent Action to Reduce Tobacco Use
11. USP Publishes Spanish Edition of United States Pharmacopeia and National Formulary
Post Your Comments:
(Date:10/13/2015)... NC (PRWEB) , ... October 13, 2015 , ... Scientists ... versus tissue biopsy in 18 patients with or without mesothelioma. Surviving Mesothelioma has just ... , The doctors from PhenoPath Laboratories in Seattle and the University of British ...
(Date:10/13/2015)... ... October 13, 2015 , ... ... new School of Nursing. Dr. McLeod—who earned her Doctor of Nursing Practice from ... education that has spanned four decades. , Dr. McLeod’s long and successful nursing ...
(Date:10/13/2015)... ... 13, 2015 , ... Breathing is one of the human ... According to T’ai Chi (also spelled “Taiji”) and Qigong Grand-masters Steven Aung, MD, ... with the 7,000 year old tradition they teach, can improve health, increase energy ...
(Date:10/13/2015)... ... 2015 , ... In an ongoing effort to provide the ... Texas, child development and pediatric therapy center, is working with TRICARE to emphasize ... options for receiving this kind of care for affected children. Because of concerns ...
(Date:10/13/2015)... Alpharetta, Georgia (PRWEB) , ... October 13, 2015 ... ... their leadership team: Debbie Vereb has been named the organization’s Executive Vice ... Tony Gerena, have been hired to key leadership roles in the company. , ...
Breaking Medicine News(10 mins):
(Date:10/12/2015)... Center for Innovation announced today that Elizabeth ... th recipient of the CME Group Melamed-Arditti Innovation ... Theranos , to change health care from reactive to proactive, ... care. CME Group will present the award at the eighth ... Naples, Florida , on Tuesday, November 17. ...
(Date:10/12/2015)... PUNE, India , October 12, 2015 ... new market research report "Spirometer Market by Product (Hand-held, Table-top, ... (Hospital, Clinic, Homecare), Application, & Geography - Global Forecast to ... reach USD 858.6 Million by 2020, at a CAGR of ... data Tables and 128 F igures spread th ...
(Date:10/12/2015)... ) ... "Personalized Medicine, Targeted Therapeutics and Companion Diagnostic ... Industry Trends, Technologies, Participants, and Environment" ... ) has announced the addition of ... Companion Diagnostic Market to 2019 - Strategic ...
Breaking Medicine Technology: