Blue Cross and Blue Shield of New Mexico to Educate Medicare Beneficiaries about Medicare's New Prescription Drug Coverage; Outreach Will Focus on Easing Beneficiaries Through the Decision-Making and Enrollment Process.

ALBUQUERQUE, N.M. -- Blue Cross and Blue Shield of New Mexico (BCBSNM) announced today an outreach campaign designed to help Medicare beneficiaries and their caregivers understand the changes occurring in Medicare's new prescription drug coverage (also known as Part D).

Medicare, the U.S. health insurance program for 42 million elderly and disabled Americans, will begin offering the new drug benefit effective Jan. 1, 2006, through plans administered by a select group of private companies.

Liz Watrin, President, BCBSNM, said the success of Medicare's prescription drug program lies in the ability of Medicare and plan providers to educate Medicare eligibles about the details of this new program.

"During this transition period, Medicare beneficiaries will face a broad array of new benefit choices for their prescription drug coverage," Watrin said. "As a market leader, Blue Cross and Blue Shield of New Mexico is focused on making these new options easy to understand for beneficiaries and their caregivers. We are committed to simplifying the process of understanding Medicare's prescription drug coverage and choosing a plan, so that beneficiaries are able to reap the savings benefits on prescription drug costs."

Beneficiaries should begin by evaluating their current and projected prescription drug usage, in order to determine whether they should enroll in a plan. Also critically important is an understanding of the Medicare timeline, enrollment requirements and restrictions. Medicare eligibles must enroll in the drug program between Nov. 15, 2005, and May 15, 2006, to avoid being locked out until November 2006. Those who enroll after May 15, 2006, will be assessed a 1% per month penalty for each month they choose not to enroll, which can add up quickly.

The regulations regarding enrollment periods and penalties are complex with numerous exceptions. For more information, call 1-800-Medicare (1-800-633-4227, TTY/TDD users call 877-486-2048) 24 hours a day, 7 days a week. You can also visit www.medicare.gov.

"Because of the strict enrollment guidelines, we're not only encouraging beneficiaries to learn about Medicare's prescription drug coverage as soon as possible, but we also will serve as an educational resource," said Watrin. "As a leading provider of Medicare Supplement plans in the state, BCBSNM has a responsibility to offer a competitive selection of prescription drug plans and to ensure that beneficiaries understand their options and the new regulations surrounding prescription drug coverage."

As part of its efforts to make the new Medicare prescription drug coverage easier to understand, Blue Cross will offer brochures, newsletter articles and online education. The outreach will explain the new drug benefit and key issues surrounding the plans. Additionally, BCBSNM is educating the producer community on the drug benefit so that they can serve as a resource for consumers.

Blue Cross and Blue Shield of New Mexico would like to remind seniors and other Medicare eligibles about the following key dates:

--  Beginning immediately: General awareness and education efforts

        Seniors, caregivers and others who may be affected by the new
        drug benefit should look for news and information from
        Medicare, Blue Cross and Blue Shield of New Mexico and other
        organizations.

    --  Oct. 1, 2005: Product marketing begins

        Medicare recipients and caregivers will begin receiving
        information from private companies about their product and
        price options.

    --  Nov. 15, 2005, through May 15, 2006: Initial enrollment period

        Medicare beneficiaries should enroll in their Medicare
        prescription drug plan of choice. Coverage will take effect
        Jan. 1, 2006, for those who enroll by Dec. 31, 2005, or the
        first day of the month following enrollment for those who
        enroll after Jan. 1, 2006.

    --  May 16, 2006, through Nov. 14, 2006: Lockout period

        Medicare eligibles may not enroll during this period.
        Penalties begin accruing, adding one percent to the monthly
        premium for each month that enrollment is delayed.

    --  Nov. 15, 2006, through Dec. 31, 2006: Secondary enrollment
        period

        Enrollment opens again during these dates.

HCSC Insurance Services Company (HISC), a wholly owned subsidiary of Health Care Service Corporation (HCSC), submitted a bid in March of this year to the Centers for Medicare and Medicaid Services (CMS) to offer prescription drug plans under Medicare's new prescription drug coverage. Blue Cross and Blue Shield of New Mexico is a division of HCSC.

About Blue Cross and Blue Shield of New Mexico:

Blue Cross and Blue Shield of New Mexico is a Division of Health Care Service Corporation, a Mutual Legal Reserve Company, an independent licensee of the Blue Cross and Blue Shield Association.