Blue Shield first to offer unique triple option managed care plan for mid-sized employers.

SAN FRANCISCO--(BUSINESS WIRE)--June 29, 1995--Blue Shield of California has introduced the state's first triple option managed care health plan providing three-year rate guarantees for mid-sized employer groups.

Starting July 1, the unique program, called Blue Shield "Advantage Core/Buy-up," will be available to businesses with 51 to 300 employees.

"The program combines affordable coverage options--including a basic HMO, an HMO with broader benefits and a point of service (POS) plan--into a comprehensive, high quality health benefits package that is new to the California marketplace," said Blue Shield Senior Vice President of Marketing, Ken Prewitt-Wood.

Key advantages include: -0-

--Wider choice, flexibility -- Covered employees pick the option of
  their choice at the time of enrollment or renewal, depending on
  the type of coverage, level of benefits and out of pocket costs
  (e.g., copayments) desired.

--HMO "test drive" -- Employees may try the HMO for up to six months
  and then switch to the POS plan if they want greater choice.

--Rate stability -- The employer pays a fixed coverage cost for all
  employees.  Rates for the basic or "Core" HMO are guaranteed for
  three years.  The "Buy-up" HMO and POS options have rate increase
  caps of three and six percent respectively for the first and second
  year renewals.-0-

Differences in rates between the employer contribution and the "Buy-up" managed care options are picked up by the employee, based on choice of plan.

"Blue Shield's innovative new triple option program gives mid-sized employers the ability to offer their workers the best of both worlds. Employees can now choose and even change options--ranging from a comprehensive, lower-cost HMO plan offering access to care through a select provider network to managed care plans providing more extensive benefits and access to larger delivery networks--depending on the level of cost-sharing elected by the employee," said Prewitt-Wood.

The new program also offers the availability of add-on optional health plan benefits for services such as inpatient psych, dental and vision care, and life/AD&D coverage.

For more information, contact a Blue Shield authorized broker or call the local Blue Shield sales office.

Blue Shield of California is one of the state's leading managed care companies, serving more than 1.5 million members and annually paying over $1.7 billion in health care benefits. The San Francisco-based organization operates one of California's fastest growing HMO's, as well as the largest statewide PPO network.

CONTACT: Blue Shield of California

Mike Odom, 415/445-5281