Blue Cross of Northeastern Pennsylvania Marks One Year Anniversary of Replacing Proprietary EDI System with Real-time, Web-based Connectivity Platform from NaviMedix.

Business Editors/Health/Medical Writers

BOSTON--(BUSINESS WIRE)--July 10, 2003

Outsourced, Turnkey Platform Exceeds Health Plan and Provider

Expectations for Functionality, Adoption and Utilization

NaviMedix(R), Inc., a leading provider of real-time, Web-based collaborative connectivity solutions for health plans, physicians and hospitals, announced today that Blue Cross of Northeastern Pennsylvania (BCNEPA) has reached a one-year milestone with its NaviNet(SM) platform. BCNEPA, the largest provider of healthcare insurance coverage in Northeastern and North Central Pennsylvania with 588,000 members, selected NaviMedix in June 2002 to replace the health plan's proprietary EDI-based provider transaction system with a Web-based, HIPAA-compliant platform, as well as to reduce providers' reliance on BCNEPA's call-center unit to process inquiries.

According to BCNEPA, NaviMedix's strong presence in serving the Pennsylvania healthcare market and its unique vision of payer/provider connectivity, as well as its ability to meet BCNEPA's expectations for functionality, ease-of-use and provider adoption and utilization, were critical reasons for the technology selection. Since going live with NaviNet in September 2002, BCNEPA has linked more than 1,300 providers, all 34 of its affiliated hospitals and 54 ancillary healthcare facilities to the platform and further strengthened provider relationships by offering workflow efficiencies that save time, money and improve provider office cash flow. With NaviNet, participating providers now have access to more than 18 value-added transactions--such as eligibility, referral submission and inquiry, claim status inquiry and pharmacy pre-authorization--more than they could access with their former EDI solution.

While evaluating return on investment, BCNEPA identified three specific areas contributing to the success of NaviNet. First, NaviNet ensured high levels of provider adoption and utilization, preserving the health plan's competitive position in the region. Second, NaviNet's flexible architecture allowed for a complete replacement of BCNEPA's proprietary EDI and clearinghouse system, leaving in its place a real-time, secure portal without the cost of maintenance, upgrades or regulatory compliance. Finally, BCNEPA benefited from the rapid, 90-day implementation of NaviNet that helped the health plan 'fast track' its conversion to a fully Web-based, HIPAA-compliant solution.

"Provider response to NaviNet has been very positive from the beginning," commented Tom Druby, vice president and chief information officer at BCNEPA. "Our providers gained a state-of-the-art, Web-based system that offers more robust functionality than our previous system, with less effort. In fact, because NaviNet is a multi-payer solution, many of our providers gain additional efficiencies by processing transactions with multiple health plans, including all of the Blue Cross Blue Shield plans in Pennsylvania, through a single point of access. From the health plan perspective, NaviNet was the right choice."

NaviNet offers real-time connectivity between health plans and their networks of providers, helping hospitals, physicians and their staff eliminate paperwork, reduce mistakes that lead to delayed and denied reimbursement claims, speed reimbursement payments and ease administrative burdens. Health plans currently using NaviNet have experienced tremendous cost savings by triaging inquiries online versus by telephone, and physician offices have noted increased productivity, enhanced patient care and improved staff satisfaction. The NaviNet solution--used by more than 65,000 physician and 475 hospital subscribers--processes more than 50 different electronic transactions for health plans including Highmark, Inc., Independence Blue Cross, Health Net, Mountain State Blue Cross Blue Shield and more.

"NaviNet offers BCNEPA and its providers a real-time platform that reduces administrative costs by automating workflow transactions between the plan and its provider network," said Tom Morrison, executive vice president of marketing and product management for NaviMedix. "NaviMedix and BCNEPA share a common mission of making healthcare more affordable by refining business processes through the use of innovative electronic communications."

About Blue Cross of Northeastern Pennsylvania (BCNEPA)

BCNEPA, an independent licensee of the Blue Cross and Blue Shield Association, is a not-for-profit health care company headquartered in Wilkes-Barre, Pennsylvania. It offers a comprehensive portfolio of health insurance products and administrative services to approximately 588,000 individuals in 13 counties. For more information, please visit www.bcnepa.com.

About NaviMedix

NaviMedix is reinventing healthcare communications between payers, physicians and hospitals. Leveraging NaviMedix's NaviNet Web-based collaborative connectivity solution, innovative health plans across the nation are reaping tremendous gains including reduced administrative costs, enhanced member care and improved and enhanced relationships with their healthcare providers. More than 65,000 physician and 475 hospital subscribers utilize the NaviNet online platform to automate more than 50 labor-intensive, paper- and phone-laden administrative processes including claim status, claims submission, eligibility, benefits reporting, credentialing, referral and authorization processing and medical management. For more information, please visit www.navimedix.com or call the company's Boston headquarters at 617-654-6100.