Health Care Options

Health Care Options
State Health Plan Preferred Provider Organization (PPO)

The State Health Plan PPO provides reimbursement for medical care expenses when you need treatment for an illness, injury, or disease. The plan covers inpatient hospital care, as well as other outpatient services received at a hospital including emergency room care.  The Plan also covers most of your community-based care (office visits), as well as necessary medical equipment and supplies (crutches, hearing aids, etc.).

This plan provides health benefits using providers and facilities that are in-network, meaning the providers and facilities have agreed to accept a discounted fee from BCBSM in order to be in-network. They won't charge you the difference between their normal charge and the amount paid by the State Health Plan PPO. When you see a PPO network provider for covered services, your out-of-pocket costs are limited to deductibles, co-insurance, and copays.

Under the State Health Plan PPO, members choose their in-network providers from the BCBSM Community Blue/Blue Preferred PPO Network. The network covers all 83 Michigan counties and is the largest PPO network in Michigan. It has more than 20,000 physicians, including specialists, and more than 140 all acute care hospitals in Michigan. Please refer to for the list of providers.

You still have the freedom to go out-of-network to see any physician, hospital or other provider of your choice. But, if you receive services from a provider not in the PPO network, you may be responsible for paying additional out-of-pocket costs. Those costs include increased copay and deductible amounts. If the provider you select doesn't participate at all with BCBSM (BCBSM has several different provider arrangements), you may also be required to pay additional charges.

An important note regarding the State Health Plan PPO deductibles: You have the freedom to see both in-network and out-of-network providers. If you choose to do so, you will be responsible for both deductibles. For example: a single person chooses an in-network hospital for surgery.  They are responsible for the deductible, then the hospital is reimbursed according to the plan design. Later in the year, that same person needs an MRI and chooses an out-of-network provider. They are responsible for the out-of-network deductible. After that deductible is met, out-of-network charges are paid according to the plan design.


OptumRx is the Prescription Drug Manager for the State Health Plan PPO and will administer all retail, mail-order, and specialty prescription services for active employees and both Medicare-eligible and non-Medicare eligible retirees.

Behavior Health/Substance Abuse Administrator

Effective October 1, 2019, Blue Cross Blue Shield of Michigan, in partnership with New Directions, will be replacing Magellan Health as the State Health Plan (SHP) PPO Behavioral Health/Substance Abuse carrier. Current SHP PPO enrollees will be automatically transitioned with no gap or changes in coverage. New SHP PPO membership ID cards will be mailed in September 2019.

Blue Cross Blue Shield of Michigan, in partnership with New Directions
State Health Plan PPO – Behavioral Health/Substance Abuse Frequently Asked Questions

Prior to October 1, 2019, Services under the State Health Plan PPO were managed and all claims handled by Magellan Behavioral of Michigan for all bargaining units. Review the Magellan Member Handbook for plan information.

Magellan has a website designated for State of Michigan employees and retirees covered under the State Health Plan PPO. Visit the site at:, then select New or Unregistered Users. Enter the Magellan toll free number 866-503-3158 and select Continue. You then have the option to register or you can select Skip Registration.

Health Maintenance Organizations (HMOs)

An HMO is a managed care plan that provides medical care through its network of physicians, pharmacies, contracted hospitals, and medical care suppliers. You can choose your own primary care physician who will provide direct care or make referrals from within the network. An HMO provides necessary hospital and medical treatment when you are sick or injured, prescription medicine services, substance abuse treatment, short-term mental health care, and routine preventive health maintenance services such as immunizations. When you see a HMO in-network provider for covered services, your out-of-pocket costs are limited to deductibles (starting October 12, 2014), and copays.

You may enroll in an authorized HMO plan serving your residential area. You may look up HMOs in your residential area using the zip code tool. Utilize the Insurance Plans page to review plan summaries or contact the HMO that interests you to request their benefit booklet. If you are new to an HMO, that HMO may ask you to select your primary care physician. Respond promptly to the carrier to complete the final phase of the enrollment process.

Health Waive

If your spouse's (non-State) employer will not cover you under their group plan because you are enrolled in any of the State-sponsored health care options, including the Catastrophic Plan, you can "opt out" completely and still receive the $50 biweekly payment (select "Health Waiver with Rebate"). You must be in pay status to receive this payment.

*Except for those employees in certain bargaining units who are hired on or after 1/1/00 who have a regular work schedule of 40 hours or less per bi-weekly pay period (not permanent-intermittent positions).

Catastrophic Benefits

The State will cover the full premium cost of this plan,* and you will receive a $50 biweekly payment for being enrolled in the Catastrophic Health Plan. Please refer to the Insurance Rates Page.

This is a hospitalization-only plan intended as an option if you have coverage elsewhere (for example, through a spouse who works for another employer). Be sure to check the terms of coverage under any other plan to ensure coverage rules allow primary coverage under that plan. Benefits under this plan are payable only after you have paid expenses equal to one month's basic salary (your deductible). The maximum deductible for two or more covered persons in your family is limited to 1½ months of your basic salary.

This plan covers inpatient hospital expenses, as well as certain other services received at the hospital on an outpatient basis (including emergency room care). This plan does not cover prescription charges, office visit charges, medical equipment, psychiatric services, or other major medical services.