Blue Care Network Of Michigan

Blue Cross holding small group rate increase to 7.4%

Blue Cross Blue Shield of Michigan's small business customers with up to 49 employees who renew insurance policies this fall will see average rate increases of 7.4 percent, the insurer said Tuesday.

The rate hike is the lowest increase in six years for the Blues and less than last fall's average 13.1 percent jump.

"By introducing new products, improving cost controls through our innovative partnerships with doctors and hospitals to improve quality and efficiency, and driving administrative savings, we were able to effectively lower our rate increases," John Dunn, vice president of middle and small group sales at Blue Cross, said in a statement.

Many small business customers last year faced 15 percent to 20 percent rate hikes, said Karl Albrecht, president of Action Benefits in Southfield, which provides support to health insurance agents who work with small businesses.

"They're jumping up and down," Albrecht said of small business customers reacting to the announcements of recent rate increases.

"Believe it or not, that's good news."

Blue Care Network, the Blues' health maintenance organization, expects an average 8.7 percent increase for its small group customers, less than fall 2010's increase of 10.9 percent.

During the fourth quarter, about 10 percent to 15 percent of the Blues small group portfolio — or about 4,400 businesses — comes up for renewal, said Helen Stojic, Blue Cross spokeswoman.

In fall 2010, the Blues' small business group consisted of about 230,000 people.

By comparison, small group rates are expected to increase about 8.5 percent for Health Alliance Plan customers this fall, which is consistent with the Detroit-based insurer's trend of an 8 percent to 9 percent rate increase during the past several years, said Mark Hall, HAP's vice president of sales.

Steve Rosser, vice president of Johnston Lewis Associates, an employee benefits and insurance company in Troy, said small businesses his firm works with tend to face higher increases than the averages companies disclose.

"That forces companies to adjust their benefits, increase their deductibles, how much an employee's contributing to the cost of benefits and potentially even switch companies," he said, adding his company switched from Blue Cross to Priority Health two years ago to save money on health insurance.

Blue Care Network of Michigan - Newsroom - Walk to School Day

- Blue Cross Blue Shield of Michigan is encouraging schools across the state to step up the fight against childhood obesity by participating in International Walk to School Day (iWalk) on Oct. 7.

"The International Walk to School Day fits right in with broader efforts underway to help schools reduce the risk and prevalence of childhood obesity," said Lynda Rossi, BCBSM vice president of social mission and public affairs. "Reaching kids at an early age is essential because they develop habits that will last into adulthood. Healthy eating and physical activity, which can be as simple as walking to school, are important life skills that help children grow and prevent health problems, such as hypertension and diabetes, later in life."

The company recently awarded Building Healthy Communities grants to 17 Michigan schools and their community partners as part of its mission-focused effort to reduce the prevalence of childhood obesity by increasing physical activity and improving nutrition. Many of the schools that received these grants will be kicking off their 2009-10 initiatives with iWalk.

In addition, the Blues also provide funds to the Council of the Governor of fitness, physical fitness and sports and the Michigan Fitness Foundation for Safe Routes to Schools grants. These grants help schools develop and maintain safe routes to schools, encouraging walking and cycling to school. Thirty Michigan schools have received grants this year and many are involved in the event iWalk.

In Michigan, 12 percent of children in college and 15 percent of high school students are considered obese.

"I believe that children who eat well and exercise have a better chance to reach their full potential for learning," said Stephanie Rockette, head of Seely McCord Elementary School in Benton Harbor. "They pay more attention in class and to do more academically and socially. In Seely McCord, we use a holistic approach to teaching our students the choice of healthy lifestyles, in partnership with our team of food service, parents, agencies and the community to improve their physical activity and nutrition. Our Blue Cross funding helps build a healthier school community and we are very excited to kick off the school year with this walking event."

Participating Blues-funded Building Healthy Communities schools include: Fred D. Leonhard Elementary in Southfield; Franklin Elementary in Cadillac; King Academy of Extended Learning and Technology in Mt. Clemens; Seely McCord Elementary in Benton Harbor; Blair Elementary in Traverse City; University Preparatory Academy — Mark Murray Campus in Detroit, and Hunt Elementary in Jackson. Many of the schools are hosting walks with parents, teachers and city officials. Some plan on gathering for a healthy breakfast after the walk, or a school-wide assembly.

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