Medicaid Health Plan Rebid: Changes in the Coverage Landscape
Update: Apr 1-15, 2024
In the recent Medicaid health plan rebid by Michigan’s Department of Health and Human Services, significant changes have reshaped coverage across the state’s ten regions. Blue Cross Blue Shield of Michigan emerged as the primary beneficiary, expanding its territory across various regions. The rebid, a key part of Governor Whitmer’s 2024-2025 fiscal year budget recommendation, will prioritize equitable, person-centered care for the nearly two million Medicaid beneficiaries. Additionally, revisions to the payment structure include withholding a greater percentage of funds to incentivize improved health outcomes and address social determinants of health.
The rebid resulted in a redistribution of territories among nine health plans, with Blue Cross Blue Shield of Michigan gaining ground in several regions. Notably, McLaren emerged as the sole plan in nine of the ten regions, while Blue Cross now has a presence in seven regions, marking significant shifts in coverage landscape.
At this time, the contracts are not yet secured in place. The new contracts are scheduled to come into effect on October 1 of this year.