BCBS of Michigan's Move Into Medicaid Attracts Criticism

Blue Cross Blue Shield of Michigan is attracting scrutiny and criticism over its decision to invest $215 million in a national Medicaid company, according to a Crain's Detroit Business report.

BCBS CEO Dan Loepp said the investment is expected to generate more than 6 percent in annual return on investments since healthcare reform will add more than 16 million new Medicaid beneficiaries throughout the next nine years, according to the report. BCBS said the investment will help it improve efficiencies and compete for new Medicaid business in Michigan. It also said generating higher profits outside of the state can make it a stronger company.

Critics of the payors' investment say the $215 million could be used to lower premiums for Michigan policyholders or increase reimbursements to hospitals, physicians and other providers. Others question how the multi-state investment will help Michigan residents and some have called it an "empire-building campaign," according to the report.

Read the Crain's Detroit Business report on Blue Cross Blue Shield of Michigan.

Related Articles on Blue Cross Blue Shield of Michigan:

BCBS of Michigan to Reward Specialists for Improving Quality, Lowering Costs
BCBS of Michigan to Spend $170M to Enlarge Medicaid Coverage
BCBS of Michigan Appeals Judge's Denial to Dismiss Antitrust Lawsuit


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