BCBS of Michigan unveils value-based program, employer fee

Detroit-based Blue Cross Blue Shield of Michigan joined 35 Blues plans to provide a value-based program for large, self-funded organizations with out-of-state employees, Crain's Detroit Business reports.

To fund the program, participating employers will be charged an assessment fee — called Blue Distinction Total Care — determined by their number of out-of-state employees. Fees will average less than 1 percent of the employers' annual health expenditure, according to the report. The fee will be presented on April invoices and is designed to go back to physicians in the form of incentive payments.

For Michigan organizations contracting with BCBS of Michigan, about a half of their employees are out-of-state workers. BCBS of Michigan will offer meetings with employers throughout the coming months to offer more information about the program.

Employees will be encouraged to see providers designated by the Blue Distinction Total Care program, but will not pay more if they decline, according to the report. 

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