BlueCross BlueShield of Tennessee Announces New Health Plan Approach; Company Introduces New and Extended Plan Options to Better Meet Customer Needs.

Business Editors & Health/Medical Writers

CHATTANOOGA, Tenn.--(BW HealthWire)--May 23, 2002

In response to escalating health care costs and market research, BlueCross BlueShield of Tennessee has introduced new group benefit plans designed to help control the cost of health insurance for millions of Tennesseans. The new multi-plan approach offers Tennessee businesses and their employees strategic, consumer-directed health care benefit options for the 21st century.

"The new multi-plan approach reflects the need for shared responsibility for health care and plan coverage costs," said Jim Gray, vice president of sales and account management for BlueCross BlueShield of Tennessee. "With this new approach we are able to provide some insulation to the employer against rising health care costs while allowing employees to choose the plan which best suits their specific needs."

The company's new approach focuses exclusively on its Preferred Provider Organization (PPO) product portfolio. But, unlike the PPO products of the past, the new approach is based on the concept of maximum flexibility.

"Our old PPO approach tied a network and a specific range of benefits together to form a product. Now, we have multiple PPO networks and a broader variety of benefit options that are all interchangeable," Gray said.

Under the new approach, network and benefit structures represent building blocks for an employer. These building blocks can be arranged to provide a wide variety of payment levels and employee cost sharing. By strategically combining multiple provider networks and benefit features, both employers and employees can better reach their financial goals.

"With the multi-plan approach, BlueCross has formed a continuum of access and pricing strategies," Gray said. "The employer is not put in the position of forcing a health care plan on the employee."

For example, larger employers can offer more than two plans and may define their contribution based on a plan, which is neither the lowest or highest cost. This approach allows employees to buy up or buy down based on their individual needs.

"Our goal with the multi-plan approach is to develop realistic solutions to meet the health care needs of Tennesseans," Gray said. "Health care affordability requires the integral involvement of multi parties in health care decisions. With BlueCross BlueShield's new multi-plan approach, that vital participation is achieved."

BlueCross BlueShield of Tennessee is the state's leader in health care financing. Founded in 1945, the Chattanooga-based not-for-profit company now serves more than 4.1 million people. The company paid more than 42 million claims and $11.4 billion in health care benefits in 2001. BlueCross BlueShield of Tennessee has more than 4,300 employees. For more information on BlueCross BlueShield of Tennessee, visit the company's Web site at www.bcbst.com. BlueCross BlueShield of Tennessee is an independent licensee of the BlueCross BlueShield Association.