The message below was emailed to U-M faculty and staff on Sept. 12, 2006. For more information:
TO: Faculty & Staff Community
FROM: Robert P. Kelch, Timothy P. Slottow, Teresa A. Sullivan
SUBJECT: IMPORTANT NEWS TO SHARE ABOUT M-CARE
Colleagues,
We are writing to share important information with you regarding M-CARE. After careful consideration and using the U-M Health System’s long-term strategic direction as a guide, we are proposing to sell M-CARE to Blue Cross Blue Shield of Michigan (BCBSM) and its subsidiary, Blue Care Network of Michigan. The proposed agreement to sell M-CARE will be considered by the Regents on Sept. 22.
The sale will also require approval from government regulators, a process that could take several months or more. We anticipate the sale could be approved by late 2006 or early 2007.
We recognize there will be many questions, and we acknowledge that answers to some questions will not be immediately available because the details are simply not yet firm. However, we will share updates with the U-M community as fully as possible. To that end, we have laid out below the answers to some of the questions you are likely to have.
Why now?
We want to stress that this is a decision based on the mission of the Health System. The current climate for the health plan industry has changed from even a year or two ago. One major change is the development and implementation of consumer-driven health care plans; another is emerging technology that may require significant capital investments. Pursuing this change now helps ensure we can continue our critical missions of educating tomorrow’s health care professionals and scientists, conducting groundbreaking research and providing exceptional care to patients in Michigan and beyond.
Under the expert leadership of M-CARE Executive Director and CEO Zelda Geyer-Sylvia, the M-CARE team has developed an exceptionally high-quality, well-regarded, and valuable health plan that makes it attractive to BCBSM and a good time to pursue the sale.
What does this mean to M-CARE members?
It means that they will continue to have access to high-quality health care coverage. To ensure there is no lapse in coverage for M-CARE members, M-CARE products will remain in place after the sale and all M-CARE members will continue to have their same plans through the length of their employer’s contract with M-CARE and renewals for 2007 coverage.
FOR UNIVERSITY OF MICHIGAN EMPLOYEES, GRADUATE STUDENTS AND RETIREES, AND COVERED DEPENDENTS OR SURVIVORS, EXISTING M-CARE PLANS WILL REMAIN IN PLACE THROUGH 2007. There will be no lapse in coverage, and M-CARE plans can be selected as usual during our upcoming Open Enrollment period (Oct. 9 – 20) for coverage through Dec. 31, 2007 and at the rates published in the Open Enrollment books that will be distributed in late September.
What about medical insurance plans offered to the University community beyond 2007?
For 2008, the University will be working with the Blues to have a health plan to meet its specific needs that is intended to provide the same level of benefits and choice as the University’s current M-CARE offerings.
We are committed to offering an excellent level of benefits, network of providers and service for faculty, staff and their dependents, retirees and their survivors, and eligible graduate students through a benefits program that will continue to be designed by U-M. Our competitive program supports our benefits strategy and the health care needs of the University community and will ensure that we continue to recruit and retain the best faculty and staff. Again, there will be no lapse in coverage for M-CARE members if a sale occurs and we will continue to offer a choice of high-quality, comprehensive plans.
What will happen to the jobs of current M-CARE employees?
U-M employees who work for M-CARE will be retained by U-M until the sale is final. Once the sale is final, many M-CARE employees will be retained by U-M for a period of time through the transition under a lease agreement to provide services to BCN. How many employees and for how long hasn’t been determined.
After that time, we will assist employees in transitioning to positions at BCBSM, Blue Care Network, other areas of U-M or other organizations. We will apply the U-M Reduction in Force policy and the federal Worker Adjustment and Retraining Notification Act, which provides for a notice of 60 or 90 days, depending on length of service.
As events unfold toward the sale date, the M-CARE administration, UMHS human resources staff and BCBSM will work together to provide more specific information about employee positions and transitions. We know that any transition of this magnitude causes concern, but we pledge to work to make it as smooth as possible for all involved.
Why Blue Cross Blue Shield of Michigan?
We believe BCBSM is a good choice. Its non-profit mission and focus on improving the quality of health care while streamlining health care administrative processes puts BCBSM in synch with our own efforts. We share a common goal of improving the health of Michigan’s citizens.
The discussions with BCBSM also include entering into an exciting joint venture to improve health care delivery and public health in our state. BCBSM’s long-standing cooperation with our health-services researchers has resulted in a number of successes in the improvement of the health status of our citizens. Part of the appeal of this opportunity is an expansion of that work together.
Finally, we think aligning with a Michigan company will make it easy for members to transition their health care coverage, since the BCBSM provider network includes nearly every M-CARE provider.
This is an important decision, and we realize that questions will arise as we continue this process. Updates will be provided through e-mail, and a Web site has been developed at www.med.umich.edu/mcareupdate/. The site will be regularly updated as more details become available. You will also find an online form available on this site so that you can pose questions, and we’ll do our best to respond fully.
Dr. Robert P. Kelch
Executive Vice President for Medical Affairs
Timothy P. Slottow
Executive Vice President and Chief Financial Officer
Teresa A. Sullivan
Provost and Executive Vice President for Academic Affairs
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