Navigation Links
Examination by National Expert Shows Blue Cross Blue Shield of Michigan's Social Mission Contributions Totaled at Least $391 Million in 2007
Date:1/30/2008

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

children

-- $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

BCBSM

-- $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 http://www.bcbsm.com/pdf/value.pdf .

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:
*Name:
*Comment:
*Email:
(Date:2/5/2016)... ... 2016 , ... Successful recruitment and retention efforts, new collaborations ... have all marked the last 12 months at Roswell Park Cancer Institute (RPCI). ... oldest cancer center, Candace S. Johnson, PhD, outlined the many accomplishments of her ...
(Date:2/5/2016)... ... February 05, 2016 , ... Freed-Hardeman University President ... have signed a joint enrollment and degree completion agreement. The agreement, which ... baccalaureate degrees at FHU|Dickson. , The agreement allows students to be jointly ...
(Date:2/5/2016)... ... February 05, 2016 , ... The American public tends to feel uncomfortable about ... than regular municipal or well water. The recent experience with lead contaminated water in ... a long way toward increasing public acceptance of recycled waste water as drinking water. ...
(Date:2/5/2016)... New York, New York (PRWEB) , ... February 05, 2016 , ... ... (APDA) announced the election of Patrick McDermott as Chairman of the National Board of ... welcome Pat as Chairman of the Board,” stated Leslie A. Chambers , APDA ...
(Date:2/5/2016)... ... ... In sleep, when the defenses of the day are at rest, rejected emotions ... disorders is significant self-criticism, and consequently these patients experience this disease with their feelings, ... for coping with this unease, but also leads to a reservoir of emotions that ...
Breaking Medicine News(10 mins):
(Date:2/5/2016)... -- --> --> ... & Delivery) and Neonatal Care Equipment Market Ultrasound, Doppler, ... Management Devices, CPAP, Capnograph, & Resuscitator) - Global Forecast ... global market over the forecast period of 2015 to ... in 2015 and is poised to grow at a ...
(Date:2/5/2016)... , February 5, 2016 ... Today, VoicePower Ltd - The Speech Recognition People, announced their ... deployed to improve patient care, reduce turnaround times and to save ... CCG ,- VoicePower client since 2013 Challenge: --> ... Challenge: --> - Six doctors ,- Wirral CCG ,- ...
(Date:2/5/2016)... http://www.researchandmarkets.com/research/hcdvg6/global_obstetrics ) has ... Obstetrics Partnering 2010-2016: Deal trends, players and ... --> http://www.researchandmarkets.com/research/hcdvg6/global_obstetrics ) has announced ... Partnering 2010-2016: Deal trends, players and financials" ... --> Research and Markets ( http://www.researchandmarkets.com/research/hcdvg6/global_obstetrics ...
Breaking Medicine Technology: