Blue Cross Blue Shield of Michigan was able to lower healthcare costs by $50 million in 2013 through its program that rewards hospitals based on the quality of care they provide, according to a report by The Detroit News.
Hospitals in the program improved on quality measures, and received incentive payments based on their savings, according to the report.
The report also cites an article published in Health Affairs, which shows that another Blue Cross and Blue Shield of Michigan program, the Physician Group Incentive Program, lowered healthcare costs 1.1 percent for adults, and 5.1 percent for children, from 2008 to 2011. According to the report, medical practices enrolled in the program also maintained or improved performance on 11 of 14 quality measures, such as breast and cervical cancer screenings and well-child visits.
These are only some of the efforts going on in Michigan to shift from fee-for-service to value-based compensation. For instance, the report notes that the Michigan Department of Community Health is shifting toward value-based reimbursement for Medicaid services, and the state plans to incorporate fee-for-value incentives when it renegotiates contracts later in 2015 with each of the 13 Health Maintenance Organizations that provide healthcare to Medicaid patients.
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