Derived from a Blue Cross® Blue Shield® of Michigan and Blue Care Network
Marketing Communications Alert

Base Rate Changes Extend Well into 2009

May 8, 2008

Blue Cross Blue Shield of Michigan adjusted some rates beginning with third quarter 2008 by updating their dental and medical pricing models. Here are some of the highlights of those base rate changes:

  • Rates for groups that still have POS plans were increased 5 to 12 percent, depending on their area location. They are encouraging POS groups to move to a standard product offering as soon as possible, in part, because these groups cannot migrate to the MOS system and because they want to preserve their experience.
  • They have made a pricing adjustment for Community BlueSM with integrated medical and drug deductibles. The resulting base rates have small decreases to reflect a re-evaluation of our experience.
  • They have adjusted for Flexible BlueSM plans with the unlimited maximum preventive care rider with Adult Immunizations, Rider PCB100-AI. The other Flexible Blue preventive care riders were left unchanged.
  • They have updated our dental plans by applying greater discounts to Blue Dental ExclusiveSM and Community Dental products. The change reflects the increased value of dental plans that use a network.
  • They have increased the discount for applying benefit maximums, including the lifetime maximum on orthodontia benefits.
  • Because provider reimbursement is based on the Dentemax network, they decreased rates for Voluntary Dental plans to reflect the increased value of using the network.
  • Voluntary Vision is receiving vision pricing model changes that were introduced with the 2007 Base Rate Update, but were not implemented in 2007 for that plan.
  • They have left prescription drugs and Master Medical pricing relationships unchanged.

Briefly …

Base rates define the value of BCBSM products in relation to each other and are used to set prices for them.

These base rates are effective July 1 and affect third- and fourth-quarter 2008 rates as well as those in first and second quarter 2009.

Should you have any questions, please do not hesitate to contact an HCA Agent Consultant at (800) 828-1HCA (1422).
HEALTH CARE ADMINISTRATORS, INC.
39500 High Pointe Blvd., Suite 400  Novi, Michigan 48375   www.hcaweb.net
Phone: (800) 828-1HCA (1422)  Fax: (248) 675-4522

Health Care Administrators, Inc. is an authorized independent managing agent for Blue Cross Blue Shield of Michigan and Blue Care Network. Blue Cross Blue Shield of Michigan and Blue Care Network are non-profit corporations and independent licensees of the Blue Cross and Blue Shield Association.

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