Transition to new U-M health plan nearing completion

Updated 12:30 PM May 16, 2007

Transition to new U-M health plan nearing completion

By Dave Reid
HRAA Communication

Preparations to solidify the spectrum of health plans to be offered in 2008 began almost immediately after the close of the sale of M-CARE to Blue Cross Blue Shield of Michigan and its subsidiary, Blue Care Network (BCN) of Michigan. M-CARE plans will cease at the end of 2007.

"An enormous amount of progress has been made and we are on track with our timeline," says Associate Vice President for Human Resources Laurita Thomas. Benefits-eligible faculty, staff and retirees will choose their 2008 benefits during the next Open Enrollment period, Oct. 8-19.

The M-CARE HMO will be replaced in 2008 by a new plan created by the University to replicate, as closely as possible, the design and cost of the M-CARE HMO. The name of the new plan, which will be administered by BCN of Michigan, will be finalized this month.

Thomas says the University will continue to offer a choice of plans and plan types to meet the broad range of needs of the University community.

"It's increasingly vital for employers and individual health care consumers to make wise choices as health insurance costs continue to escalate in our country. That's an extraordinary challenge, but we also recognize our benefits package as a factor of great importance to recruiting and retaining the best faculty and staff," Thomas says. "Our health plans for 2008 honor our commitment to offer a choice of high-quality, comprehensive plans to meet the diverse health care needs of our community."

"Like the M-CARE HMO that precedes it, we expect the new plan to be a very cost-effective managed care option," says Marty Eichstadt, director of benefits. The plan will be administered for the University by BCN of Michigan, but will differ from other BCN products since it's been designed to be similar to the M-CARE HMO, and will be offered only at the University.

The new plan will provide continued access to the U-M providers in the current M-CARE network, and the premium rates will closely match those the University would have expected from M-CARE for the 2008 plan year.

"The annual rate setting process is taking place with all vendors now, and we plan to make the 2008 rates for all U-M health plans available to the community on the Benefits Office Web site by August, well in advance of this year's Open Enrollment period," Eichstadt says.

The University also plans to continue offering additional plans in 2008 including:

• BCBS Community Blue Preferred Provider Organization

• Care Choices

• Health Alliance Plan

• BCBSM Comprehensive Major Medical

• GradCare

Care Choices was purchased April 1 by Michigan-based Priority Health and is expected to be offered in 2008 under the name Priority Health.

A plan comparison chart and monthly premiums for all U-M plans will be available by early August on the Benefits Office Web site at www.umich.edu/~benefits/. Questions about U-M benefits plans can be sent by email to benefits.office@umich.edu.

Transition to new U-M health plan nearing completion

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