Blue Cross Blue Shield of Alabama, the state's largest insurer, has changed the rankings of 18 hospitals within its hospital tiered network, according to a report on AL.com.
Effective next month, these hospitals will move to a lower tier, from Tier 1 to Tier 2. An additional eight hospitals will move to Tier 1 from Tier 2.
Hospitals are classified as Tier 1 or Tier 2 based on the quality and the value of care, according to the report. Patients pay less out-of-pocket costs at Tier 1 hospitals than at Tier 2 hospitals.
Blue Cross Blue Shield of Alabama attributed the change in rankings to the company putting a greater emphasis on the cost of care.
"Due to recent increases in healthcare cost, this year's criteria placed greater emphasis on cost," the company said, according to the report. "It is important that we continue to provide our members information about the more cost-effective hospitals."
Rosemary Blackmon, executive vice president of the Alabama Hospital Association, views the formula the insurer used to evaluate cost, based on Medicare reimbursements, as unrealistic.
"The hospitals are committed to providing quality care at a good value," Ms. Blackmon said, according to AL.com. "We would like to see a better financial measure for the tier rating just to account for the rock-bottom Medicare payments we receive."
The tier changes will affect about 450,000 members, or 21 percent of the state membership of Blue Cross Blue Shield of Alabama, according to the company. Blue Cross Blue Shield of Alabama said hospitals will be able to move up to Tier 1 during quarterly evaluations, but hospitals will not be bumped to a lower tier during the calendar year, according to the report.
A full list of hospitals and their rankings can be found here.