By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Does WellPoint Care About Quality…or Reducing Cost?
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Does WellPoint Care About Quality…or Reducing Cost?
BusinessPolicy & Law

Does WellPoint Care About Quality…or Reducing Cost?

JasonShafrin
JasonShafrin
Share
3 Min Read
SHARE

One large insurer is planning to begin paying hospitals based on quality.

“WellPoint is replacing the system it uses to help offset rising medical and other costs at hospitals in 14 states that serve its Blue Cross Blue Shield plans, which cover 34 million people. In recent years, it has raised its payments to those hospitals by an average 8% a year.

One large insurer is planning to begin paying hospitals based on quality.

“WellPoint is replacing the system it uses to help offset rising medical and other costs at hospitals in 14 states that serve its Blue Cross Blue Shield plans, which cover 34 million people. In recent years, it has raised its payments to those hospitals by an average 8% a year.

More Read

3 Pathology Synoptic Reporting Examples
Revenue Cycle Management in Healthcare: Managing Insurance Denials
Best Denial Management Strategy: Avoid Denied Claims
Treating Patients Rather Than Primary Diagnosis
Why drug price regulation should not be ruled out

Under the new system, the company will pay increases only to hospitals that score high enough on a test based on 51 indicators of treatment quality. The indicators include whether the facility tries to prevent patients from relapsing after they leave the hospital, whether it follows a safety checklist and how satisfied the hospital’s patients say they are with their treatment.”

Does Well Point really care about quality?  The answer is maybe.

Improving quality of care could improve WellPoint’s bottom line.  If patients demand improved quality of care, implementing a hospital VBP system could attract more members. Further, WellPoint could just be altruistic and this may be an attempt to improve the health of its members (the Healthcare Economist is skeptical of this point).

It could also be the case the WellPoint does not care at all about quality.  High-quality hospitals will get the same annual increase they did before; low-quality hospitals will get less.  The chairman of the Federation of American Hospitals (FHA) accurately notes that hospital quality measures are far from perfect and are less-than comprehensive.  Nevertheless, even if the selected metrics measured quality inaccurately, certain hospitals would still receive lower payments and WellPoint would benefit either through increased profits or increased market share (by lowering premiums).

Rather than responding to pressure to increase qualityof care, WellPoint’s VBP efforts may in fact be a response to employer and beneficiary pressure to reduce premiums.

TAGGED:health care businesshealth care policyWellPoint
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5KFollowersLike
4.5KFollowersFollow
2.8KFollowersPin
136KSubscribersSubscribe

Latest News

Veneers vs. Crowns vs. Bonding: Understanding Cosmetic Options
Veneers vs. Crowns vs. Bonding: Understanding Cosmetic Options
Dental health Specialties
June 23, 2026
dental implants
Dental Implants and Quality of Life: What the Outcomes Data Shows
Dental health Specialties
June 23, 2026
Why Outpatient Addiction Treatment Works Better Than Most People Expect
Addiction Addiction Recovery
June 20, 2026
grief affects brain
How Grief Affects The Brain And Body
Infographics Mental Health
June 19, 2026

You Might also Like

family and patient advisory council
BusinessHospital Administration

Patient and Family Advisory Council: Lessons Learned

October 18, 2014

Why You Should Have a Good Relationship With Your Primary Care Doctor

June 11, 2012

The Sleepy American

April 11, 2011
Big data in healthcare
DiagnosticsMedical EthicsMedical InnovationsMedical RecordsPolicy & LawPublic Health

Big Data = Big Brother? Leveraging Transaction Data for Better Healthcare

July 9, 2014
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2026 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?