One of Blue Cross Blue Shield's longest-serving CEOs is looking toward retirement after 17 years.
Earlier this year, Daniel Loepp, CEO of Blue Cross Blue Shield of Michigan, announced his plans to retire at the end of 2024.
"I think that for the company's sake, we need new leadership that can run this company for eight to 10 years at the very least," Mr. Loepp, 67, said. "We need strong, steady leadership, which I thought I brought in my tenure. I think it's a good recipe."
Mr. Loepp joined BCBS Michigan in 2000 and became its chief executive in 2006. He sat down with Becker's to discuss the company's recent acquisitions and the legacy he hopes to leave.
Keeping the Blues strong
Earlier this year, BCBS Michigan acquired BCBS Vermont as a subsidiary. BCBS Vermont retained its name, executive leadership and board and headquarters.
Mr. Loepp said keeping smaller plans thriving is an important part of the Blues system overall.
"What we found with Vermont, and we'll see if others are interested, is let them keep their identity, let them keep their people in Vermont," he said.
BCBS Michigan's role is to offer expertise and scale to its Vermont subsidiary, Mr. Loepp said. With over 5 million members, BCBS Michigan can provide scale in areas like stop-loss insurance and Medicare Advantage that are more difficult to operate in a smaller market, he said.
"The intent here is not for us to make a lot of money. My intent here is to help the Blues system be stable," Mr. Loepp said. "I think part of the system being stable is having smaller plans operating in those states that people are familiar with, and they're happy with their Blue plan in whatever state they're in."
In some ways, competing with for-profit insurers is difficult, Mr. Loepp said, but Blues plans retain a significant advantage in local markets. BCBS Michigan has over 50% market share in the state.
"They're local, and they have personal relationships with their providers, with both physician groups and hospitals, not just when contracts are up. I think that does give an advantage, but your access to capital is more difficult, there's no doubt about that," he said.
Greatest accomplishments
The toughest challenge in Mr. Loepp's career at BCBS Michigan was gaining approval for the insurer's transition from a nonprofit to a mutual holding company.
In 2013, then-Michigan Governor Rick Snyder approved the conversion, which allowed the company to invest in joint ventures with other Blue plans and acquire a workers compensation insurance business, examples of the diverse approach needed to thrive in the healthcare industry, Mr. Loepp said.
"Fifteen years ago, people would have scoffed at the idea of this ever happening," he said. "We made it happen, and I think we're a better company. We're serving our members in a better way. I think it's all been a win-win."
Mr. Loepp counts increasing the number of minority and female executives at the company among his greatest accomplishments as CEO, in addition to shifting most of the company's office spaces to the core of Michigan's major cities.
"To contribute to the renaissance of Detroit, of Grand Rapids, of Lansing — I grew up in Detroit," Mr. Loepp said. "It's something that I'm very proud of."
Ultimately, he hopes his legacy at BCBS Michigan is that he left the place better than he found it, Mr. Loepp said.
"There's a lot of things to be proud of. I'm very sure that whoever replaces me will continue that and put their own imprint on the company as well," Mr. Loepp said.