Voices members seek answers on M-CARE sale

If there was a bottom-line message to come out of a recent special meeting involving core team members of the Voices of the Staff and University administrators, it's that M-CARE still is a good option for the coming year—and beyond.

Even after the University-owned health care plan is sold to Blue Cross Blue Shield of Michigan (BCBSM), administrators said, employee health plans for 2008 and in the future will include a similar variety of choices.

It wasn't long after the Sept 12 news of the University's plan to sell M-CARE to BCBSM and its subsidiary Blue Care Network that Voices leaders—volunteers from across the community who have led an effort to provide staff input to University administration—were looked to for answers on what the change would mean to U-M employees. Program leaders met with President Mary Sue Coleman, Executive Vice President for Medical Affairs Dr. Robert Kelch, Executive Vice President and Chief Financial Officer Timothy Slottow and Associate Vice President for Human Resources Laurita Thomas Sept. 15 to get answers to carry back to staff regarding the sale's impact on physician choice, employee out-of-pocket costs, faculty and staff recruitment and the 400 M-CARE employees, among other issues.

Both Coleman and Kelch reiterated that coverage for employees and others who use M-CARE would continue uninterrupted throughout the transition.

"We want this to be seamless. We want there to be choice. We know there's not a one-size-fits-all. We want to continue to do innovative things for our employees," Coleman told the group, adding that the decision to sell was made after careful consideration of current trends in the insurance industry, and the realization that it would take a significant investment for M-CARE to remain competitive in the changing market.

"We worked long and hard to continue to do the right thing for our employees," Coleman said.

Kelch and Slottow assured Voices members that the University will continue to be in charge of its own benefits plan, and that employees will see the same level of service from M-CARE over the next year and should expect similar options in a range of plans for 2008.

"To employees it really won't look that different at all," Slottow said, referring to plan choice, quality and relative cost.

Addressing the question of whether employees will pay more out of pocket in the future, Kelch said it is hard to predict, as recent years have seen significant increases in health care costs that employers and employees alike have had to share. But, he said, the transaction itself will not affect employee costs.

"No one knows how much health care is going to cost, but we'll be in charge of how we spend our health care dollars," Kelch said.

Joy Choiniere, contract administrator associate for U-M Hospital and a member of the Voices rewards and benefits committee, said she has been asked if employees will be able to use the same physicians.

"Yes. If anything there will be a modest expansion in physician choice," Kelch said, adding some health care providers may not choose to participate in the new plans, but he does not expect that number to be large. The network will remain the same, he said.

In addition, Kelch told Voices members, signing on with BCBSM will "open more doors more easily around the country," which addressed Lynette Wright's question about what happens to retirees who move out of state. Wright is manager of material acquisitions for Plant Operations.

Other questions and responses include:

Q: What will happen to the 400 M-CARE employees?

A: M-CARE staff members will be retained until the sale is finalized, after which many of them will stay at U-M, providing services to Blue Care Network through some of the transition. After that, employees will be assisted with transitions to positions at BCBSM, Blue Care Network, other areas of U-M or the community.

Q: How long will U-M have control over our plans?

A: The agreement is for four years, and U-M will decide whether to continue after that time.

Q: What will happen to the diabetes program?

A: Through the pilot program that began July 1, participants are not charged co-payments for certain drugs that control diabetes symptoms. The goal of the research is to find out if medication use will improve if the cost of drugs and supplies is eliminated or reduced. Kelch said the two-year pilot will be completed, adding that more of this kind of collaboration between U-M and BCBSM will be possible through the new agreement.

Q: If BCBSM plans are so good, why are we dropping them after this year?

A: The University is eliminating one of its most costly BCBSM plans that was not chosen by many people, the BCBSM/United traditional plan. The addition of M-CARE and BCBS PPO plans a year earlier, and the general shift that occurred as people moved in and out of plans, required the University to assess its offerings and make adjustments. Kelch told the group each insurer has a number of products to sell, which explains why BCBSM plans vary across the state. The company (or buyer) works with the insurer to find the plan or plans that work best with the company's budget and the needs of its employees. U-M will be in control of choosing those plans from BCBSM, Kelch said.

Q: What shall we tell people who want to know if M-CARE is still a good choice?

A: M-CARE will continue to provide the same high level of service through a number of options. "You should still compare in Open Enrollment the various plans to choose the best one for you, and know that it will take you through 2007," Thomas said. You should know:

• No changes to M-CARE plans are taking place in 2006 or 2007. During Open Enrollment (Oct. 9-20) employees may confidently choose from the same range of M-CARE plans that long have been available;

• The University will work with Blue Cross Blue Shield of Michigan in the coming year to design 2008 replacement offerings for the M-CARE plans, which will include replacing the M-CARE HMO (health maintenance organization) with a Blue Care Network HMO-like product. It will be designed to reproduce, as closely as possible, the features of the M-CARE HMO. The new plan will be similar to the current version in its network of doctors and clinics, services offered and cost;

• The University retains control over the design of its health plans, including what services are covered and the cost to employees. The sale will not increase the cost of health care plans, however, overall market forces that continue to put pressure on costs are not expected to stop, so actual costs cannot be predicted;

• The University's prescription drug plan will not be affected by the sale;

• Information sessions will be held on the Ann Arbor, Dearborn and Flint campuses and in the U-M Health System. For times and locations go to www.umich.edu/~benefits/new/mcareinfo.htm.

More Stories

• U starts Michigan Memorial Phoenix Energy Institute
• Voices members seek answers on M-CARE sale
• Regents approve sale of M-CARE
• New eight-story tower will open in 2010 adjacent to Kellogg Eye Center
• Better gas mileage is Detroit's safest route to fiscal health
• Existing vaccine facilities can handle flu pandemic
• Ringing in new antibiotic drugs
• Survey elicits information to boost wellness efforts for graduate students
• Regents approve site preparation for North Quad
• Projects to upgrade residence halls continue
• Spotlight: Flint gift officer, alumna is good for a laugh or two
• If you haven't been there, be sure you get to U-Go's
• Can U.S. get better health care at a manageable cost?
• Mumps poses risk to students, faculty and staff, authorities say
• Feedback guides International Center service changes
• Wallenberg recipient helps 'Lost Boys' and others from East Africa
• New Voter Resource: "A Decision-Making Guide to the Michigan Civil Rights Initiative"
• Author Sandra Cisneros to explore complexity of Latina identity
• Intervention improves student academic outcomes
• Coleman celebrates U-M history with dedication
• Don't Miss
• Photo: Provost's trivia contest winner
• Photo: Emerson String Quartet at Rackham Sept. 29
• Photo: "Lost Boys of Sudan" screens at Michigan Theater Sept. 27