Blue Cross Blue Shield Alabama Discontinues Medicare Fitness Benefit

Blue Cross and Blue Shield of Alabama has confirmed the discontinuation of its Medicare fitness benefit, effective January 1. This strategic move follows a reassessment of their Medicare offerings, aiming to uphold competitiveness and financial stability amidst evolving regulatory compliance requirements.

The insurer had previously transitioned enrollees from the SilverSneakers program to a FlexCard fitness allowance in 2024 through its Blue Advantage products. Despite these AI-driven prior authorization adjustments in their offerings, utilization rates remained low. Limited engagement in these fitness benefits, paired with increasing medical costs, influenced the decision to terminate the benefit.

BCBS Alabama emphasized that while certain members value fitness benefits, their underutilization could escalate costs, adversely affecting all policyholders. As a result, the company is redirecting its resources towards essential medical services to benefit the majority of its members, aiming to keep premiums and out-of-pocket expenses stable despite rising healthcare costs. Furthermore, industry analysis by the Better Medicare Alliance with Avalere Health reveals a declining trend in individual plans offering supplemental fitness benefits, aligning with decisions like BCBS of Minnesota's to cease gym membership coverage by 2026.

Despite these adjustments, Blue Cross and Blue Shield of Alabama continues to support its members' wellness through gym membership discounts via its Blue365 program.