Blue Cross of California Expands Technology Offer to More Than 1,000 California Physicians.

Business Editors/Health/Medical Writers

THOUSAND OAKS, Calif.--(BUSINESS WIRE)--May 6, 2004

$2 Million in Hardware/Software Technology to Be Given to

Doctors Serving Low Income Communities and Patients

Blue Cross of California (Blue Cross) today announced it is expanding an innovative technology initiative to include 1,040 safety net physicians in California. Traditionally, safety net physicians provide care to the uninsured, poor and low-income patients, including those enrolled in the Medi-Cal and Healthy Families insurance programs. With an additional $2 million in funding, this technology initiative will help these physicians improve patient care, achieve greater efficiency and improve administrative functions. These new technologies are intended to provide greater access to information and data exchange via the Internet or wireless handheld devices.

Free of charge, these pre-selected safety net physicians will have their choice of either:

1. Prescription Improvement Package: A handheld electronic

prescribing unit, which will allow physicians to

electronically generate prescriptions. Computerized physician

order entry (CPOE) for prescriptions has the capability to

issue prompts that warn against the possibility of drug

interaction, allergy or overdose as well as provide

information that helps physicians keep up with new drugs as

they are introduced into the market. CPOE also has the

capability to provide drug-specific information that

eliminates confusion among drug names that sound alike,

improve communication between physicians and pharmacists and

reduce health care costs due to improved efficiencies and

fewer errors.

-- Includes a wireless handheld PDA, a wireless access point and

a one-year subscription to an e-prescribing service.

-- Physicians will be able to use this system to easily write

prescriptions and have them automatically faxed or e-mailed to

the pharmacy of their choice.

Or

2. Paperwork Reduction Package: A fully loaded professional grade

Dell desktop computer and Dell printer to facilitate online

communication, including paperless submission of claims. Blue

Cross estimates there are thousands of physicians still

engaged in manual paper claim processing, adding

administrative cost and time to a burdened health care system.

By choosing the Paperwork Reduction Package, which works

directly with Blue Cross' information technologies, physicians

can utilize an Internet connection to submit claims, receive

reimbursements and track and provide patient information in a

more timely fashion.

-- This package is intended for doctors who are not making full

daily use of computer technology or the Internet.

-- The system will provide the basic infrastructure for online

communication, including paperless submission of claims as

well as improved communications and security regarding a

patient's health coverage.

-- Doctors will also be able to utilize Blue Cross' Provider

Access website (or other websites) where member eligibility,

claim status and medical policies can be reviewed and

verified.

"Our technology initiative program will help California's safety net physicians gain access and participate in the online medical community," said David Helwig, Blue Cross president and CEO. "We have partnered with Dell and Microsoft to provide technology packages to meet the needs of a 21st century environment. The more physicians who can communicate electronically, the more improvement we will see in the delivery of medical care and information."

By offering physicians the opportunity to enhance their technological capabilities and offering technology solutions that can be easily adopted by the medical community, Blue Cross is demonstrating leadership and commitment to its physicians. According to Hector Flores, medical director for Family Care Specialists Medical Group in Montebello, "This program represents a significant value to doctors -- who are often behind the curve in technology solutions and encumbered by seemingly endless paperwork -- and to patients who will reap the benefits of a physician who has taken the opportunity to enhance their practice through state-of-the-art technology. The extra resources required to process and submit things like paper claims can be better directed toward funding quality health care and making that care more affordable and accessible."

Dr. Jeff Kamil, Blue Cross medical director, is encouraging doctors who have already integrated desktop systems into their practice to select the e-prescribing option as it provides maximum value to their patients. An ihealthreports article issued by the California HealthCare Foundation in April indicated that in California there are close to 405,000 preventable prescription errors per year and that implementing these CPEO systems could likely avert 249,000 of them. "Every doctor is different and every practice is different. Because of this, we are giving physicians the opportunity to choose a technology package that best meets their needs," he said. "Most importantly, all of these physicians' patients will benefit from this program -- not just Blue Cross members."

Launched in January 2004 to more than 19,000 of its parent company's network physicians nationwide, the original retail value of the technology initiative was approximately $40 million. The retail value of the expanded program has grown to approximately $42 million.

Blue Cross of California and its California affiliates, serving more than 7.5 million medical members, are operating subsidiaries of WellPoint Health Networks Inc., the nation's second largest publicly traded health care company. WellPoint serves the health care needs of more than 15.3 million medical members and approximately 46 million specialty members nationally. WellPoint offers a broad spectrum of quality network-based health products including open access PPO, POS and hybrid products, HMO and specialty products. Specialty products include pharmacy benefit management, dental, utilization management, vision, mental health, life and disability insurance, long term care insurance, flexible spending accounts, COBRA administration, and Medicare supplements. Blue Cross of California can be found on the web at www.bluecrossca.com. Blue Cross of California is an independent licensee of the Blue Cross Association.