Blue Cross Blue Shield of Michigan Programs and Negotiated Discounts Save Blues Customers More Than $13 Billion Annually

Physicians, hospitals, Michigan Blues work together to make coverage affordable and enable statewide access to high quality health care

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Blue Cross Blue Shield of Michigan

Oct 01, 2010, 09:26 ET

DETROIT, Oct. 1 /PRNewswire/ -- Blue Cross Blue Shield of Michigan today released its 2010 Annual Report of Program Value. The report outlines more than $13 billion in health care savings derived from BCBSM's negotiated discounts with hospitals, pharmacies and physicians, as well as tens of millions in savings achieved through collaborative programs to improve the quality and efficiency of Michigan's health care system.

The report is available at the company's website at bcbsm.com.

"There are many factors that affect insurance premiums, and most of the focus is on the negative factors as costs rise," said Andrew Hetzel, BCBSM vice president for corporate communications. "The discounts that Blue Cross negotiates with health care providers, combined with our continuous collaborative efforts with doctors and hospitals to improve quality, are crucial to keeping premiums within reach."

The report details the Blues' success in delivering discount savings on hospital, professional, pharmacy and dental rates totaling $12.9 billion.

It also describes a collection of more than 10 long-term collaborative initiatives to improve healthcare quality and safety in Michigan that is successfully reducing complications, improving patient outcomes and realizing tens of millions of dollars worth of cost savings.

Blue Cross Blue Shield of Michigan, together with more than 8,100 physicians, close to 100 physician organizations, and more than 40 hospitals across the state, are collaborating to improve the primary care system and boost quality on common, major conditions and procedures such as heart surgery, angioplasty, breast cancer, bariatric surgery, general and vascular surgery.

"These initiatives are designed in partnership, so there is a strong sense of ownership and a feeling of shared responsibility for success among payer and provider," Hetzel said.

Successful results include:

Doctors in the Blues' Physician Group Incentive Program saved almost $9.5 million in 2009 by appropriately using high- and low-tech radiology services.
An effort to increase the use of generic drugs saved about $700 million over seven years.
The angioplasty initiative saves an estimated $15.2 million each year. It has reduced hospital deaths by 32 percent and reduced post-procedure blood transfusions by 30 percent.
The cardiac surgery initiative has decreased the incidence of post-surgical prolonged (longer than 24 hours) ventilation from 19 to 13.8 percent. This saves $25,000 per case when ventilation is not prolonged.
An initiative to boost the safety of advanced cardiac imaging procedures reduced the amount of radiation by more than 50 percent with no negative effect on image quality.
The bariatric surgery initiative has reduced complication rates for bariatric surgery patients by 24 percent. Emergency room visits following surgery has declined by 31 percent.
An initiative to improve general surgery quality has resulted in a 37 percent reduction in post-surgical complication, and an 18 percent reduction in surgical site infections.
The Patient Centered Medical Home program – the largest of its kind nationally – is beginning to see positive results after just one year. Early findings have shown that PCMH practices have lower rates for adult and pediatric inpatient admissions, radiology usage, and ER visits than non-PCMH practices.