The current health care system provides important services to Blue Cross members every day. However, the trend of rising health care costs continues to put pressure on the affordability of insurance.
The connection between the cost of care and your premiums
Blue Cross wants to make sure every member receives high quality health care at a great value. We also believe payments for care should be fair and consistent among all doctors, hospitals and clinics in our network. That’s why we’re taking the lead to change the current system of health care payments.
Let’s reward better care
Most hospitals and clinics use the “fee-for-service” model today. This simple structure starts with a set price list for services provided. Blue Cross then pays a fee every time a covered service is provided to one of our members.
There’s one problem with this model: it doesn’t reward good outcomes. Fee-for-service has also done nothing to keep cost of care from increasing year-over-year. It also allows for significant differences in hospital billing for common procedures. Depending on where a Blue Cross member goes for routine care, the price difference for the same service can range anywhere from 500% to 1,000%.
Same care, random swings in cost
The following are real examples of low and high prices that Blue Cross pays for common procedures throughout the state:
Making changes to impact outcomes
Blue Cross is doing four key things to impact outcomes and increase affordability:
Want to learn more about how we’re managing costs? Learn about new payment models
See what others are saying about managing costs:
New York Times: Hospital Billing Varies Wildly, Government Data Shows
Star Tribune: Hospital prices show wild variations