Health insurance payments changing to boost reforms

Mar 19, 2014

Andy Hetzel says Blue Cross Blue Shield is trying to move hospital payments away from volume and toward value.
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For several years, Michigan hospitals and physicians have been implementing reforms aimed at cutting costs and improving patient care. Similar reforms are taking effect due to the Federal Affordable Care Act. A month ago, Blue Cross Blue Shield of Michigan announced that 24 affiliated hospitals have agreed to launch or expand a different kind of reimbursement model.

The new approach aims to link Blue Cross’s repayments to hospital systems and physicians with reforms designed to improve patient outcomes.

Previously, payments were determined by a “fee for service” model that’s widely considered a factor in the soaring cost of healthcare.

Blue Cross Blue Shield of Michigan spokesman Andy Hetzel says the reimbursement plans will improve the quality of life and save money for physicians and care providers. Technology updates and changes in communication make it faster and easier for patients and doctors to move forward with diagnostics and recovery.