Information about the HAP HMO elimination

Effective January 1, 2018, the university will no longer offer the Health Alliance Plan HMO to eligible faculty, staff or retirees. Below is information about the change and information to help current enrollees select a new plan:

Why is the university eliminating the Health Alliance Plan HMO for health insurance?
HAP recently announced a significant cost increase and a more limited network of providers to U-M members for 2018. These changes would increase members’ monthly co-premiums and exclude the providers used by 80 percent of our current HAP members.
What do current HAP enrollees need to do as a result of this change?
Coverage under the HAP HMO plan will continue through the end of 2017. Current enrollees should review the other health plan options and make a change during Open Enrollment, October 23-November 3, 2017.
If a different plan is not selected during that time, the university will automatically move HAP enrollees into the Community Blue PPO plan administered by Blue Cross Blue Shield.
Why will current HAP enrollees be moved by default to the PPO plan?
The Community Blue PPO plan offers the greatest flexibility to choose providers and facilities at a lower cost than the HAP HMO. In addition, the PPO covers more than 99 percent of the primary care physicians used by current HAP enrollees and has a broader network of specialists and physicians than the current HAP plan.
Will current HAP members need to change their primary care physicians?
It is highly unlikely that current HAP members will need to change primary care physicians. Nearly every primary care physician utilized by current HAP members is available in the networks of other U-M plans.
How should those currently enrolled in the HAP HMO choose a new plan?
Current HAP members should review other U-M health plans to choose a new plan that best meets their needs. They should then check with their current health care provider to see if they participate with the new plan.
They can also use the Blue Cross Blue Shield provider search tool.
How do other plans compare to HAP?
Here’s a general overview of how the other plans compare to HAP:
Community Blue PPO features the same copays for office visits and specialists as HAP if you stay in-network, and there’s no deductible. The PPO network offers a greater choice in providers and covers nearly every primary care physician, specialist and hospital currently used by U-M faculty and staff covered by HAP. The PPO plan offers the flexibility to visit any doctor without a referral when you use the PPO network. The PPO monthly premiums are lower than HAP, but higher than U-M Premier Care or the Comprehensive Major Medical plan.
U-M Premier Care also features the same copays for office visits and specialists as HAP. You’ll need to select a primary care physician from Network 1, which includes nearly all of the current primary care physicians for U-M faculty and staff currently covered by HAP. There’s no deductible when using Network 1 providers. U-M Premier Care has a lower monthly premium than the PPO plan, but a higher premium than the Comprehensive Major Medical plan.
The Comprehensive Major Medical plan offers the most flexibility in terms of providers with the lowest monthly premium cost. With the CMM plan you will pay 20 percent of the cost of your health care after meeting the $500 individual or $1,000 family deductible. You can see any provider you choose without a referral, including specialists, though you will pay less out of pocket if your provider participates with Blue Cross Blue Shield of Michigan.
Read a more detailed comparison of available health plans
Will access to specialists be limited under other U-M plans?
Primary care physician and specialist participation varies by plan. According to Blue Cross Blue Shield of Michigan, most physicians in Michigan are in the PPO network, so members who switch from the HAP HMO to the Community Blue PPO plan should not experience any disruption in terms of in-network access to specialists.
Members should contact BCBSM or the provider to confirm participation with their selected plan.
Will this change affect many faculty, staff and retirees?
Enrollment in HAP has declined steadily over the last several years. This change will affect a limited number of faculty, staff and retirees.