In a move that punctuates the end of an era for regional healthcare structure, Michigan Medicine is set to discontinue the University of Michigan Health Plan at the conclusion of 2025. According to MLive, the decision stems from a rigorous evaluation of the plan’s financial sustainability amid a dynamic health insurance market.
Mary Masson, Michigan Medicine spokesperson, outlined that the competitive nature of health insurance and revisions to Medicare Advantage plans contributed to the plan's unsustainability. Masson emphasized in a statement obtained by MLive that the strategy redirects focus to patient care, education, and research. Conversely, the development has sparked concern among the health community, particularly because the plan covers approximately 64,000 patients and employs around 190 people.
The Michigan Nurses Association expressed strong disapproval over the timing of the announcement. As reported by Lansing State Journal, Jeff Breslin, president of the association, criticized the lack of a "clear replacement plan" and implied foresight regarding the plan's fiscal challenges before Michigan Medicine acquired Sparrow Health System. Breslin suggested a lack of transparency, "Did U of M Health buy the plan just to shut it down? It’s impossible to believe that no higher-ups knew about the plan’s financial troubles before U of M Health bought Sparrow. At the least, they should have known. And to drop this bomb on healthcare workers during negotiations – to take away coverage of the very care we provide without a solid option – is just unacceptable."
After the transition, members of a now-defunct plan will have the opportunity to select another University of Michigan health insurance option during the 2025 Open Enrollment. Queries regarding the changes can be directed to the UM Health Plan's Customer Service team, reachable at 800-832-9186, details shared by CBS Detroit. In the specter of this organizational shake-up, the Michigan Nurses Association is considering strike actions, which, if approved, could potentially empower union leaders to initialize a strike to leverage contract negotiations.
A report from Crain's Grand Rapids Business shows that Blue Cross Blue Shield of Michigan dominates the state's health insurance market, holding 67% of the share in 2023, with Priority Health at 12%. This concentration makes it harder for smaller insurers like Physicians Health Plan.
