MiBlueDaily
Jan. 14, 2026
Health care affordability is one of biggest challenges facing Michigan families and employers. One of the clearest solutions to lasting change that impacts affordability is value-based care—and Blue Cross Blue Shield of Michigan (BCBSM) is helping lead that transformation across Michigan.
During the Michigan Big Show takeover, Blue Cross leaders and physician partners explained how moving away from the traditional fee-for-service model is creating real opportunities to control costs while improving care.
Under fee for service, providers are paid based on how many services they deliver, not whether patients get healthier. That approach drives unnecessary care and rising costs. Value-based care changes the equation.
“We need to change that incentive model,” said Todd Van Tol, Executive Vice President of Health Care Value at BCBSM. “We need to pay for the outcomes we care about—patient experience, quality, preventive care, effective chronic disease management and good surgical outcomes. Let’s tie dollars to those outcomes, not just the number of services.”
Prevention as the Foundation for Affordability
One of the most powerful cost-control tools in value-based care is prevention. By encouraging early intervention and proactive management of chronic conditions, Blue Cross’ value-based programs help keep members healthier — and out of costly care settings like emergency rooms and hospitals.
“Value-based care flips the script,” said Dr. Kurt Lindberg, President and Medical Director of Holland Physician Hospital Organization. “You get an allotment of money to take care of people, and if they stay healthy, you keep the change. That motivates us to prevent serious events instead of waiting for someone to get very sick.”
Dr. Lindberg described how value-based incentives allow primary care practices to actively track patients with chronic conditions, reach out when they fall behind on care and coordinate services more effectively.
“We’re proactively calling people, making sure they’re okay and staying on top of their care,” Lindberg said. “We’re motivated to keep people healthy and out of the hospital.”