Blue Cross Blue Shield of Michigan

Company Overview:

Company History: Blue Cross Blue Shield of Michigan is incorporated as a non-profit corporation under Michigan law. It has a number of subsidiaries that provide other services such as workers’ compensation (market share of more than one quarter in Michigan), a national dental PPO (DenteMax) with business in all 50 states and the District of Columbia, a long term care subsidiary (LifeSecure). The Blue Cross Blue Shield of Michigan’s healthcare operations including a wholly owned HMO subsidiary that provides healthcare coverage to over one half of Michigan’s insurable population. The company services all segments of the healthcare marketplace including non-group, small groups, medium size groups and large groups. Both underwritten groups and self funded groups are served. National accounts groups (especially automobile manufacturers) include substantial numbers of out of state members. Groups with over 100 members account for about 13% of the company’s total membership, but this segment has been declining. Blue Cross Blue Shield is Michigan’s insurer of last resort for individuals and people converting from group insurance so the company has continuous open enrollment for individual coverage plans. This has caused rating organizations to raise some concern about adverse selection. The company’s sale and distribution channels consist of an internal sales force and a network of agents that handle all health care products. Non-group program are sold exclusively by an internal sales force. Sales to small groups are exclusively through six managing agents and numerous producing agents. There are also contracts with associations and chambers of commerce as well as sales to large groups directly or through agents.
Principle Sales Methods: The company’s sale and distribution channels consist of an internal sales force and a network of agents that handle all health care products. Non-group program are sold exclusively by an internal sales force. Sales to small groups are exclusively through six managing agents and numerous producing agents. There are also contracts with associations and chambers of commerce as well as sales to large groups directly or through agents.

Health Business: Blue Cross Blue Shield of Michigan is incorporated as a non-profit corporation under Michigan law. It has a number of subsidiaries that provide other services such as workers’ compensation (market share of more than one quarter in Michigan), a national dental PPO network (DenteMax) with business in all 50 states and the District of Columbia, a long term care subsidiary (LifeSecure). The Blue Cross Blue Shield health care operations including a wholly owned HMO subsidiary provide health care coverage to over one half of Michigan’s insurable population. The company services all segments of the healthcare marketplace including non-group, small groups, medium size groups and large groups. Both underwritten groups and self funded groups are served. National accounts groups (especially automobile manufacturers) include substantial out of state members. Groups with over 100 members account for about 13% of total membership, but this segment has been declining. Blue Cross Blue Shield is the insurer of last resort for individuals and people converting from group insurance so the company has continuous open enrollment for individual coverage plans. This has caused rating organizations to raise some concern about adverse selection. The company’s sale and distribution channels consist of an internal sales force and a network of agents that handle all health care products. Non-group program are sold exclusively by an internal sales force. Sales to small groups are exclusively through six managing agents and numerous producing agents. There are also contracts with associations and chambers of commerce as well as sales to large groups directly or through agents.