Jan. 12, 2006
New Product Aimed at Lowering Number of Uninsured Kansans
A new, low-cost health plan designed to make insurance more affordable for uninsured Kansans – and which has the endorsement of two state medical organizations and the state’s top insurance official – was unveiled today by Blue Cross and Blue Shield of Kansas (BCBSKS).
Value Blue, which is available beginning March 1, is “a cooperative effort to find a long-term solution to help uninsured Kansans,” said Michael M. Mattox, BCBSKS president/CEO. Value Blue is endorsed by the Kansas Medical Society (KMS), Kansas Hospital Association (KHA) and Kansas Insurance Commissioner Sandy Praeger.
Value Blue is available to Kansans who are not currently enrolled in a health plan and have not been for the past 12 months, and who have an annual gross household income at or below 200 percent of the U.S. Department of Health and Human Services poverty level.
BCBSKS is initially offering Value Blue in 85 of the 103 counties in the company’s service area; the company continues to work on securing adequate provider networks in several other counties. (A listing of counties where Value Blue will not be available March 1 is included at the end of this release.) The BCBSKS service area includes all Kansas counties except Johnson and Wyandotte.
Mattox said the growing number of uninsured Kansans continues to put a burden on the state’s health care delivery system and that the state’s largest health insurer wanted to create a product to lessen that burden.
“There has been much talk in recent years about the problems associated with the growing number of uninsured Americans as well as the estimated 300,000 Kansans who do not have the protection health insurance offers,” he said. “We determined it was time to take a step toward finding a long-term solution by creating a low-cost program. We are pleased that so many of our contracting hospitals and health care professionals have agreed to partner with us to make our Value Blue premiums within reach of all eligible Kansans.”
According to Mattox, the number of uninsured Kansans is a problem because the cost of caring for the uninsured is often shifted to those who have health insurance. Other times providers absorb the cost associated with treating the uninsured as charity care or expend administrative costs and staff time as bill collectors.
Most importantly, he said, uninsured Kansans who do not have access to routine health care services often put their health at risk by delaying treatment until their conditions worsen, lessening the potential for good outcomes.
“We believe solutions to the problems of the uninsured in Kansas can be created through the private sector,” Mattox said. “This cooperative effort between Kansas health care professionals, hospitals and BCBSKS, with the support and encouragement of our insurance commissioner, is a great step forward.
“All Kansans deserve to have access to affordable health insurance and, with that, access to the health care services they need to live long, happy and healthy lives,” he said.
In order to make the program work for income-eligible Kansans, BCBSKS has not included a fee for administration in Value Blue premiums and will not charge for the substantial costs of developing and promoting the program. In addition, Value Blue contracting providers have agreed to accept as payment-in-full 50 percent of their normal BCBSKS allowance for covered services.
“Value Blue represents a creative, private sector approach to providing lower cost health insurance for some individuals and families who are uninsured today,” Praeger said. “I applaud the willingness demonstrated by our health care professionals, hospitals and BCBSKS to reduce their fees in this collaborative effort so that families can afford insurance and thus be able to get the health care they and their families need.”
Tom Bell, president of KHA, explained why the statewide hospital association endorsed Value Blue: “In November, the KHA Board of Directors endorsed Value Blue with the hope that comprehensive coverage will become available to more Kansas families. Unfortunately, hospital charity care programs will continue to be the source of most relief for the uninsured in our state. KHA’s endorsement of Value Blue is a demonstration of the concern hospitals have about the growing number of uninsured as well as our desire to work with Blue Cross, Commissioner Praeger and KMS to make a difference.”
Slaughter, KMS executive director, agreed that steps must be taken to help uninsured Kansans.
“We recognize that the problem of the uninsured is complex and cannot be solved overnight,” he said. “However, that should not prevent us from taking positive steps to make insurance affordable and available to uninsured Kansans. We are hopeful that the significant contribution of physicians, hospitals and BCBSKS will make this program a success and provide eligible Kansans with much-needed health insurance coverage. We are pleased to join KHA, Blue Cross and Commissioner Praeger in this effort to extend health insurance to more Kansas families.”
Value Blue will be available March 1 in all counties of the BCBSKS service area except: Allen, Atchison, Bourbon, Butler, Cloud, Decatur, Edwards, Ellsworth, Ford, Franklin, Greeley, Harvey, Lincoln, Mitchell, Rush, Thomas, Trego and Wichita.
For more information on Value Blue, call 1-800-874-1823 or, in Topeka, 291-4303.
Blue Cross and Blue Shield of Kansas is an independent licensee of the Blue Cross and Blue Shield Association. BCBSKS is the state's largest health insurer, serving all Kansas counties except Johnson and Wyandotte.
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