2.  Began as two separate companies
 Formed one company in 1975
 Only health care provider in Michigan that cannot
deny anyone because of pre-existing conditions
 Considered the “Insurer of last resort”
 Non-for-profit company
 Largest Health Care Provider in Michigan-
currently holds 65% of the market share
 Locations
◦ Detroit, Southfield, Traverse City, Ann Arbor, East
Lansing, Grand Rapids, Holland, Jackson, Marquette, Port
Huron, Shelby Township, Flint, New Hudson
 Employees- Approximately 7,000
 Net Sales- 9.84 million dollars

3.  BCBSM competes within the Health Care
Provider market
◦ Service provider
 Main competitors
◦ Inside the Box
 HAP-Health Alliance Plan
 United Health
 Priority Health
 Aetna
◦ Outside the box
 Canada

4.  Main Customers
◦ Individuals
 Do not make profit for the company
 May drastically change as Health Care Reform takes
effect
◦ Groups (other businesses, B2B)
 When a company wants to provide their employees
with health insurance, they purchase insurance
products in group rates.
◦ Young people coming off of their parents’
insurance
◦ People with pre-existing conditions
◦ Doctors, Hospitals, Physicians- not as consumers
but as partners/key stakeholders of BCBSM

5.  Only health care provider who cannot deny coverage
to someone because of a pre-existing condition
◦ “Insurer of last resort”
 Mission Statement
◦ Blue Cross will never drop someone’s coverage because of
health reasons
◦ Partnering with the state to cover more than 32,000
children through MIChild
◦ Providing financial support to 30 free clinics statewide
◦ Contributing more money than any other company to
provide Michigan with better health and health care
◦ Advocating and educating through Alliance for
Advancing Nonprofit Health Care

6.  Product strategy
◦ To have the best coverage for their customers
 Distribution strategy
◦ To have the largest variety of choices of service providers to their
customers so that they are able to receive health care service
wherever they go
 Pricing strategy
◦ Affordable health care, but also make enough profit to put back
into the customers
 Almost 92 cents of every dollar collected from premiums goes to
pay for health care services. Only 8 cents is used to keep the Blues
running.
 Promotional Strategy
◦ Promoting to young adults and minorities
◦ Community involvement
 Matthew Stafford
 Working with different charitable organizations
 Non-profit organization
◦ Most coverage, most options
◦ “Insurer of last resort”

7. ◦ “In 2009 BCBS created a culture of environmental responsibility that
cuts costs, reduces waste and makes the Blues leaner and greener.”
◦ 48,000 square feet-
 The amount of blooming sedum on top if our downtown Detroit
parking structure. This living roof, along with a rain catching
infrastructure, made our parking deck one of the fist to receive
national recognition from the U.S. Green Building Council. The
financial and environmental benefits include:
 Recycling rain water to irrigate the landscaping and our Detroit headquarters
 Lowing long-term maintenance costs
 Reducing storm water runoff
 Moderating the roof’s temperature and the temperature of buildings around it
 Reducing noise pollution
◦ 5 million-
 The number of paper vouchers we didn’t print because we’re paying
more health care providers electronically. Electronic payment
reduces cost, paperwork and time, and provides faster access to
funds for doctors and hospitals. In 2010, we estimate we’ll save
670 trees by not printing 7.7 million vouchers.

8. ◦ 60,000-
 Sheets of paper have been saved since last 2009, when
we switched to electronic pay stubs. Each year, we expect
to avoid printing and mailing 95,000 sheets of paper by
giving our employees their pay stubs online.
◦ $158.6 million-
 The cumulative value achieved in 2008 and 2009 through
company-wide improvement projects. Teams across the
organization work every day to identify and eliminate
redundancy and avoidable cost.
◦ 99.8%-
 Our third quarter customer service score. Blue plans
gauge performance on important customer service
measures such as timeliness and accuracy of claims
processing. This is just one initiative of many across the
company to create efficiencies.

9.  Political-Legal Environment
◦ Keeping up on Health Care Reform policies
 New website for their members/ the public to explain
how the health care reform will affect them
 www.bcbsm.com/healthreform
 Social-Cultural Environment
◦ BCBSM prides itself on being an extremely diverse
company
◦ Also targeting minority groups such as
Arabic/Chaldean groups
◦ Keeping young people in Michigan by providing job
opportunities

10.  Health Care Reform
◦ Blue Cross and Blue Shield of Michigan has been
evolving with the new Health Care Reform
legislation
 New website launched to describe new legislation
 www.bcbsm.com/healthreform
 Blues investing in young people
◦ Working with young people to adapt to changes in
the market and learn evolving education
 Keeping young workers in Michigan
◦ With job rates falling, BCBSM is working to keep
people in Michigan by providing many job
opportunities