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Blue cross blue shield of michigan






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    Blue cross blue shield of michigan Blue cross blue shield of michigan Presentation Transcript

    • Blue Cross Blue Shield of Michigan
    • Company Overview
      Began as two separate companies
      Formed one company in 1975
      Only health care provider in Michigan that cannot deny anyone because of pre-existing conditions
      Considered the “Insurer of last resort”
      Non-for-profit company
      Largest Health Care Provider in Michigan- currently holds 65% of the market share
      Detroit, Southfield, Traverse City, Ann Arbor, East Lansing, Grand Rapids, Holland, Jackson, Marquette, Port Huron, Shelby Township, Flint, New Hudson
      Employees- Approximately 7,000
      Net Sales- 9.84 million dollars
    • Market
      BCBSM competes within the Health Care Provider market
      Service provider
      Main competitors
      Inside the Box
      HAP-Health Alliance Plan
      United Health
      Priority Health
      Outside the box
    • Market
      Main Customers
      Do not make profit for the company
      May drastically change as Health Care Reform takes effect
      Groups (other businesses, B2B)
      When a company wants to provide their employees with health insurance, they purchase insurance products in group rates.
      Young people coming off of their parents’ insurance
      People with pre-existing conditions
      Doctors, Hospitals, Physicians- not as consumers but as partners/key stakeholders of BCBSM
    • Core Competency
      Only health care provider who cannot deny coverage to someone because of a pre-existing condition
      “Insurer of last resort”
      Mission Statement
      Blue Cross will never drop someone’s coverage because of health reasons
      Partnering with the state to cover more than 32,000 children through MIChild
      Providing financial support to 30 free clinics statewide
      Contributing more money than any other company to provide Michigan with better health and health care
      Advocating and educating through Alliance for Advancing Nonprofit Health Care
    • Marketing Strategy
      Product strategy
      To have the best coverage for their customers
      Distribution strategy
      To have the largest variety of choices of service providers to their customers so that they are able to receive health care service wherever they go
      Pricing strategy
      Affordable health care, but also make enough profit to put back into the customers
      Almost 92 cents of every dollar collected from premiums goes to pay for health care services. Only 8 cents is used to keep the Blues running.
      Promotional Strategy
      Promoting to young adults and minorities
      Community involvement
      Matthew Stafford
      Working with different charitable organizations
      Non-profit organization
      Most coverage, most options
      “Insurer of last resort”
    • The Blues Go Green
      “In 2009 BCBS created a culture of environmental responsibility that cuts costs, reduces waste and makes the Blues leaner and greener.”
      48,000 square feet-
      The amount of blooming sedum on top if our downtown Detroit parking structure. This living roof, along with a rain catching infrastructure, made our parking deck one of the fist to receive national recognition from the U.S. Green Building Council. The financial and environmental benefits include:
      Recycling rain water to irrigate the landscaping and our Detroit headquarters
      Lowing long-term maintenance costs
      Reducing storm water runoff
      Moderating the roof’s temperature and the temperature of buildings around it
      Reducing noise pollution
      5 million-
      The number of paper vouchers we didn’t print because we’re paying more health care providers electronically. Electronic payment reduces cost, paperwork and time, and provides faster access to funds for doctors and hospitals. In 2010, we estimate we’ll save 670 trees by not printing 7.7 million vouchers.
    • The Blues Go Green
      Sheets of paper have been saved since last 2009, when we switched to electronic pay stubs. Each year, we expect to avoid printing and mailing 95,000 sheets of paper by giving our employees their pay stubs online.
      $158.6 million-
      The cumulative value achieved in 2008 and 2009 through company-wide improvement projects. Teams across the organization work every day to identify and eliminate redundancy and avoidable cost.
      Our third quarter customer service score. Blue plans gauge performance on important customer service measures such as timeliness and accuracy of claims processing. This is just one initiative of many across the company to create efficiencies.
    • Political-Legal Environment
      Keeping up on Health Care Reform policies
      New website for their members/ the public to explain how the health care reform will affect them
      Social-Cultural Environment
      BCBSM prides itself on being an extremely diverse company
      Also targeting minority groups such as Arabic/Chaldean groups
      Keeping young people in Michigan by providing job opportunities
      Other Environmental Factors
    • Evolution in the Blues
      Health Care Reform
      Blue Cross and Blue Shield of Michigan has been evolving with the new Health Care Reform legislation
      New website launched to describe new legislation
      Blues investing in young people
      Working with young people to adapt to changes in the market and learn evolving education
      Keeping young workers in Michigan
      With job rates falling, BCBSM is working to keep people in Michigan by providing many job opportunities