Enrollment in Michigan MCOs Down Due to Plans’ Decreased Participation in Medicare, Medicaid
For the first time in at least 10 years, enrollment in Michigan MCOs has declined, "largely" because some health plans ended their participation in Medicare+Choice and Medicaid, the Detroit Free Press reports. Enrollment in managed care plans fell by about 8,000 last year, according to a study called the "Managed Care Review" that was released at a July 17 Michigan Association of Health Plans meeting. The Free Press reports that it "looks as if [MCOs] could continue to lose enrollment" (Rios, Detroit Free Press, 7/18). For instance, Health Alliance Plan has cut Medicare+Choice coverage for 4,000 seniors in Oakland and St. Clair counties; beginning in January, Blue Care Network will drop its Medicare Blue program in Detroit, Flint and Lansing, affecting 1,700 seniors; and earlier this year, Care Choices dropped supplemental Medicare coverage for 4,000 seniors in Washtenaw and Livingston counties. Plans have said "inadequate reimbursements" are responsible for the cutbacks, the Free Press reports (Akther/Anstett, Detroit Free Press, 7/18). MCO report author and health care finance analyst Allan Baumgarten said, "There are serious questions about which Michigan [MCOs] will continue in Medicare+Choice in 2002 and after." Health Alliance Plan spokesperson Susan Schwandt said the insurer "will try to remain" in Medicare+Choice for "as long as possible." And to compensate for dropping its Medicare Blue plan in several areas, Blue Cross will offer supplemental Medicare plans that cost between $30 and $90 per month (Webster, Detroit News, 7/18).
Profits Up
The Managed Care Review also noted that Michigan MCOs earned a profit last year for the first time since 1996. Combined, the state's MCOs made $51.9 million in profit, compared to a loss of $45.3 million in 1999. MCO premiums also increased by an average of 8.4% in 2000; the average monthly premium in 2000 totaled $148.57 compared with $137.09 in 1999 (Rios, Detroit Free Press, 7/18).
