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BLUE CROSS & BLUE SHIELD OF OHIO NAMED BIDDER OF CHOICE FOR BUREAU OF WORKERS' COMP CONTRACT; PACT ESTIMATED TO SAVE $31.6 MILLION PER YEAR

 CLEVELAND, Aug. 25 /PRNewswire/ -- Blue Cross & Blue Shield of Ohio (BCBSO) has been selected as bidder of choice by the Bureau of Workers' Compensation (BWC) to process its inpatient hospital bills in a program that could save $31.6 million per year.
 Acting in Columbus today, the BWC board authorized Administrator J. Wesley Trimble to enter into negotiations with Cleveland-based BCBSO for a two-year contract.
 BCBSO's winning proposal provides net guaranteed savings for BWC of 20.1 percent, which, on estimated inpatient hospital bills of $157 million per year, would deliver savings of nearly $63.2 million over a two-year term.
 BWC inpatient hospital bills are expected to be in the range of $123 million to $157 million per year.
 BCBSO will receive a fee for its services only after savings exceed the guaranteed level, and there will be a negotiated cap on the fee. BCBSO's fee is not a fixed cost to BWC. It is based entirely on the company's performance in creating savings and is taken from the savings.
 Two other insurers, Community Mutual Insurance Co. (CMIC), a Blue Cross & Blue Shield firm based in Cincinnati, and Healthstar Managed Care Corp. of Independence, Ohio, also submitted bids.
 All bidders were given data for one year's BWC inpatient bills as the basis for calculating bids.
 "We commend the Bureau of Workers' Compensation and Administrator J. Wesley Trimble for their careful approach to the awarding of this contract," said Kent W. Clapp, BCBSO president and chief operating officer.
 Clapp said that, coupled with other BWC cost-containment initiatives, the company's cost-effective affiliation with BWC could also be expected to result eventually in savings for many of the businesses whose employees are covered by Workers' Compensation because of direct savings to the fund.
 BCBSO operates one of the three largest computer centers in Ohio -- the largest for an insurance company -- from its suburban Beachwood Data Center.
 Clapp added: "An important message to employers in developing this cost-saving method is that, as the oldest and largest health insurer in Ohio, we can offer similarly favorable rates to traditional health insurance customers."
 -0- 8/25/93
 /CONTACT: David Eden of William Silverman & Company, 216-696-7750, for Blue Cross & Blue Shield of Ohio/


CO: Blue Cross & Blue Shield of Ohio ST: Ohio IN: INS SU: CON

KL -- CL016 -- 5904 08/25/93 17:21 EDT
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Publication:PR Newswire
Date:Aug 25, 1993
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