Blue Cross Blue Shield of Michigan plans to sell management and consulting services to up to 20 smaller Blues plans in other states in a move to restructure the organization, reports Crain's Detroit Business.
As an increasing number of baby boomers reach retirement age, Michigan Blue Cross has created a new division to manage and coordinate emerging markets like Medicare Advantage. This division will provide managed care consulting services to smaller Blue Cross plans in other states as a way to boost company profits and help smaller Blue Cross arms.
The restructuring project, which the company implemented last fall, aims to cut administrative costs at Michigan Blue Cross by $300 million during three years and boost profits in growth areas like Medicare.
Michigan Blue Cross is the nation's largest single-state Medicare Advantage provider, according to Crain's Detroit Business. It has grown significantly over the past several years, from 170,567 Medicare Advantage members in December 2010 to 468,984 in May 2016.