Published by Michigan Medicine. cancel the UM Health Plans to focus on direct patient care, education, and research Nov. 27. Michigan Health Care will continue to provide coverage for patients. A complaint was made These will be repaid following the New Year until December 31, 2025. UM Health Plan michigan care and Michigan Care Advantage The plan is expected to be communicated to members by the end of the year.
Mary Masson, a University of Michigan health spokeswoman, said in an email to The Michigan Daily that the university made the decision to discontinue the UM Health Plan after a comprehensive evaluation.
“After a thorough business and financial evaluation, UM Health has made the difficult decision to discontinue the UM Health Plan,” Masson wrote. “This announcement comes after a comprehensive evaluation of the plan’s financial sustainability, market trends, and the evolving needs of our members.”
Alan Baumgarten, an independent analyst and health policy consultant, said in an interview with The Daily that there should be no major changes to the benefits available to members despite the cancellation.
“Currently, U of M provides all of the basic benefits set forth in the Affordable Care Act,” Baumgarten said. “Therefore, it should not impact which providers you have access to and what your benefits are.”
Masson cited Michigan State. Competitive health insurance landscape The reason for canceling the plan is development in Centers for Medicare and Medicaid Services program.
“Despite significant efforts to preserve the plan, the increasingly competitive health insurance landscape and CMS changes to Medicare Advantage plans make it unsustainable to continue providing the high level of service that members deserve. ” Masson wrote.
The Michigan Department of Health Services said the change will likely result in layoffs, but the hospital is working to help relocate employees. Mr. Masson addressed concerns regarding employee layoffs and emphasized that the organization is committed to supporting affected employees through reassignment, termination, and career counseling.
“Every effort will be made to relocate displaced employees and provide alternative employment opportunities,” Masson wrote. “We deeply value our employees and will provide them with severance benefits and career counseling.”
alternative A comprehensive health insurance plan is also provided to eligible faculty, staff, and retirees. Other members, typically students, will have access to a separate UM health insurance plan that takes effect next January.
In an interview with The Daily, Richard Haas, a professor at SJ Axelrod College of Health Management and Policy, explained what the discontinuation means for consumers.
“It was similar to the UM Premier plan, but with slightly lower premiums and slightly more network limits,” Haas says. “But other than that, my perception as an employee, looking at my options, it was a pretty similar service. So it probably wouldn’t be as big of an issue locally, but in Lansing… I think it could be a bigger problem.”
UM Health last April. Sparrow health system Expanding care for Michiganders across the state. Haas said UM Health Plan was born at Sparrow Health and was originally called Sparrow Health Plan.
“The area where I think (UM Health Plan) is pretty big is the Lansing area because that’s kind of where it started,” Haas said. “The university acquired that by purchasing Sparrow Hospital in Lansing, so we inherited it with that purchase.”
Baumgarten said he feels Sparrow Health Plan’s size contributed to its cancellation.
“When Michigan Medicine acquired Sparrow Hospitals, I think the health insurance companies, Doctors Health and PHP, were just an ancillary addition that they added at the same time,” Baumgarten said. Ta. “They sold it to Blue Cross Blue Shield, the state’s largest health insurance company, and got out of the health insurance business. So whether they had any intention of continuing to operate the Sparrow Health Plan is questionable. I don’t understand.”
Baumgarten said he believes UM Health’s move to reallocate time and resources from implementing its medical plan to other priorities is primarily driven by economic reasons.
“Michigan has a long history of owning and operating health insurance companies, many of whom have said they no longer want to be in the business,” Baumgarten said. “They lost more than $32 million in 2023, which in itself is one good reason to get out of that business. I say I’m not making any money, but I might be able to make a profit if I sign up with a major health insurance company in the state.”
Daily News contributors Anjali Budhram and Sarah Palushi can be reached at [email protected]. and [email protected].
