Blues partner with HBA and NMS to offer large employers innovative managed care alliance.

SAN DIEGO--(BW HealthWire)--May 13, 1997--The Blue Cross and Blue Shield Association (BCBSA) today will announce a partnership with Network Management Services (NMS) and Health Benefits America (HBA), an ADP company, to create BluesCONNECT, a managed care alliance delivering a broad array of services to large, multi-state employers.

BCBSA developed BluesCONNECT after research concluded that national companies prefer to cover their multi-state employees under one health care plan rather than separate regional plans.

"Our three organizations, previously competitors, are teaming up to bring multi-state employers a seamless national product unrivaled in the marketplace," said Patrick Hays, BCBSA president and CEO, "BluesCONNECT is truly unique because it connects many of the independent Blue Plans through the industry's best national account administration service providers: NMS and HBA."

BluesCONNECT will result in full electronic commerce with national employer payroll and HRIS systems, breakthrough enrollment technologies and the ability for national employers to connect non-Blue and "carve-out" vendors.

"For Blue Cross of California, our participation in BluesCONNECT means we can offer our large, multi-site accounts enhanced national account administration that our competitors simply can't match," said Scott Henick, vice president, national accounts, Blue Cross of California. These services include:

- Automated enrollment services - Consolidated billing - Individual/retiree billing - Improved customer support functions - Customized employee communications - Centralized eligibility database - Electronic premium distribution - COBRA administration - Improved reporting capabilities - Employer/Plan electronic commerce

These benefits are possible only through the collaborative efforts of the three unique service organizations.

NMS will provide the national account administration systems technology and EDI connectivity for eligibility and banking with national employers. "We are proud to provide our systems to support BluesCONNECT," said Mark Tierney, NMS CEO, "Through our BEN-NETT(TM) systems, multi-state employers will finally have a solution for consolidated health plan interface."

Both NMS and HBA provide benefit outsourcing solutions to many of the country's largest employers.

"HBA is assisting Blue Cross and Blue Shield companies in the streamlining and standardization of certain functions which will enable them to be more efficient and more responsive to members," said Ronald C. Gunnell, co-founder, HBA. "Overall, we're helping BCBSA achieve an even greater objective -- to unify the Blues companies."

Blue companies participating in BluesCONNECT as of May 6 are: Blue Cross and Blue Shield of Utah, Arkansas Blue Cross and Blue Shield, Blue Cross and Blue Shield of South Carolina, Blue Cross & Blue Shield of Connecticut, Inc., Blue Cross and Blue Shield of Oklahoma, Blue Cross and Blue Shield of Memphis, Blue Cross Blue Shield of Delaware, Blue Cross and Blue Shield Nebraska, Blue Cross of California, Blue Shield of California, Blue Cross and Blue Shield of Georgia, Highmark Blue Cross and Blue Shield (Pennsylvania), Blue Cross and Blue Shield of Illinois, Blue Cross and Blue Shield of Michigan, Independence Blue Cross (Philadelphia), Regence Blue Cross and Blue Shield of Oregon, Blue Cross and Blue Shield of Maryland, Empire Blue Cross and Blue Shield (New York), Blue Cross and Blue Shield of Minnesota, Blue Cross of Idaho, Blue Cross and Blue Shield of Florida, Blue Cross and Blue Shield United of Wisconsin, Regence Washington Health Blue Shield, Blue Cross and Blue Shield of Massachusetts, Finger Lakes Blue Cross and Blue Shield (Rochester, N.Y.) and Blue Cross of Puerto Rico.

Participants in BluesCONNECT must be accredited, or be in the process of being accredited, by the National Committee for Quality Assurance (NCQA), the Washington, D.C.-based accreditation body for HMOs.

Participating Blue Plans must also adhere to stringent administration and performance standards designed to maintain high standards of eligibility and enrollment, ID card management, billing and premium distribution, customer service procedures and COBRA administration.

"BluesCONNECT does demand more from member companies," said Hays, "But, in return, it provides the highest level of benefits and services to large employers."

BCBSA currently defines large employers as groups of 5,000 or more employees.

BCBSA is a federation of 58 independent, locally operated Blue Cross and Blue Shield companies who insure nearly 68 million Americans, more than 57 percent -- 36.4 million -- who are in managed care plans.

CONTACT: Blue Cross and Blue Shield Association

Iris D. Shaffer, 312/530-2734 (beeper in San Diego)

Laura Ryan, 312/440-6161