Blue Cross MN Partnership Expands Value-Based Care for Rural Members

Blue Cross and Blue Shield of Minnesota (Blue Cross) has joined forces with value-based care provider Homeward to expand access to care for Medicare Advantage members living in rural Minnesota communities.

Through the value-based partnership, Blue Cross Medicare Advantage members in 24 Minnesota counties outside of the Twin Cities metropolitan area will gain access to Homeward’s care services in Spring 2023. These offerings include in-home visits, community-based visits, and technology-enabled services such as telehealth.

“Our agreement with Homeward is another important step for Blue Cross’ nationally recognized Medicare Advantage plans,” Mark Steffen, MD, senior vice president and chief medical officer at Blue Cross and Blue Shield of Minnesota, said in the press release.

“Blue Cross and Homeward will be working with local hospitals, clinics, and care systems in each community to ensure that, together, we can work to solve one of the biggest challenges in the healthcare system today. We are excited for the opportunity to increase our support for populations and communities that are in need of more healthcare resources.”

Homeward provides support throughout a patient’s care journey, offering referrals and additional post-discharge care. The company serves rural communities and prioritizes local recruitment to bolster clinic and hospital workforces.

Blue Cross Medicare Advantage members will receive care under a full-risk value-based arrangement. Healthcare payments will be 100 percent tied to improving health outcomes and reducing the total cost of care.

Blue Cross and Homeward plan to expand the offering to additional Minnesota counties as they identify more patients with care gaps.

Rural communities, in particular, face stark health inequities. According to the National Rural Health Association’s Policy Institute, 80 percent of rural counties in the US do not have enough primary care providers.

Only 20 percent of healthcare providers serve rural Minnesota communities, and more than a quarter of rural physicians expect to leave the workforce within the next five years, the Minnesota Department of Health found. Additionally, 40 percent of all Blue Cross members live outside the Twin Cities area.

“I cannot be more proud to partner with the largest health plan in my native state of Minnesota to deliver care,” Jennifer Schneider, MD, co-founder and chief executive officer of Homeward, who grew up in Winona, MN, said. “Homeward’s mission is personal, and the opportunity to provide an end-to-end care experience for deserving individuals is a privilege. I am grateful for Blue Cross’ innovative approach and commitment to delivering the best care experience and outcomes.”

This is not the first time Blue Cross has leveraged a value-based agreement to lower costs for members. In the fall of 2019, the payer entered into a value-based contract with Minnesota Oncology, a practice in the US Oncology Network.

During the first two years, the contract helped reduce cancer care costs by more than 10 percent for patients with Blue Cross employer group coverage. In addition, these patients saw decreased emergency visits and inpatient admissions.

Another Blue Cross payer, Blue Cross Blue Shield of Michigan, recently helped further the shift to value-based care by initiating full-risk reimbursement arrangements with six provider organizations.

With the new contracts, around 30 percent of the payer’s Medicare Advantage members will receive services from physicians participating in full-risk reimbursement contracts.