Keystone Health Plan Central Partners With PacifiCare Behavioral Health for Managed Behavioral Health Care Services

Business Wire, August 2, 2002

Business Editors & Health/Medical Writers

LAGUNA HILLS, Calif.--(BW HealthWire)--Aug. 2, 2002

Keystone, Among the Nation's Highest-Ranking Health Plans in Member Satisfaction, Selects PacifiCare Behavioral Health for Its Quality and

Innovative Programs

PacifiCare Behavioral Health, (PBH), a subsidiary of Cypress, Calif.-based PacifiCare Health Systems Inc. (Nasdaq:PHSY), announced that Camp Hill, Pa.-based Keystone Health Plan Central (KHP Central) has selected PBH as its behavioral health-care partner.

The effective date for the contract is Nov. 1, 2002.

PBH will offer managed mental health and chemical dependency services to more than 200,000 Keystone enrollees through its new health plan division, which offers complete, cost-effective behavioral health carve-out plans, as well as stand-alone care management tools for health plans.

Keystone is the jointly owned for-profit managed health plan subsidiary of Capital Blue Cross and Pennsylvania Blue Shield providing managed care services to members in 19 counties in central Pennsylvania and the Lehigh Valley.

According to a recent study, Top 25 HMOs with High Satisfaction Ratings, conducted by the National Research Corp., KHP Central is Pennsylvania's highest-ranking health plan in member satisfaction, and the fourth highest-ranking overall in the nation.

"Keystone Health Plan Central selected PacifiCare Behavioral Health based on our shared commitment to quality and innovation; they feel we're the best equipped to meet the behavioral health needs of their members," said Jerry Vaccaro, M.D., PBH president and chief executive officer.

"We understand the needs of health plans, and this was key to their decision. They were attracted to our commitment to improve clinical quality and service -- what we call 'Best Care.' We're excited about our selection, and we look forward to expanding our presence in the eastern U.S., especially with health plans."

Keystone members can benefit from PBH's Assertive Care Management (ACM) program, which is one example of how PBH helps provide more effective care. The ACM program focuses on keeping members healthier and lowering costs by reducing hospital admissions and days of in-hospital care.

The ACM program is directed to members with severe and persistent mental illness. Dedicated care managers maintain regular contact with these high-risk members, their families, care providers and social service agencies to help them maintain their highest-possible levels of functioning.

"We chose to partner with PacifiCare Behavioral Health because of their extensive health plan experience and their comprehensive behavioral health services," said Joseph Pfister, president and CEO of Keystone Health Plan Central.

"We were immediately impressed with their groundbreaking and effective care management systems. The clincher for us was our site visit, where we saw first-hand that they deliver on their promises. We found that their dedication to quality drives the entire organization."

About PacifiCare Behavioral Health

PacifiCare Behavioral Health provides mental health, chemical dependency and employee assistance services to covered members and maintains a national network of behavioral health-care practitioners. Clients served include employers, school districts, union trusts, public sector agencies and health maintenance organizations. PacifiCare Behavioral Health is a wholly owned subsidiary of PacifiCare Health Systems.

About PacifiCare Health Systems

PacifiCare Health Systems is one of the nation's largest health and consumer services companies with approximately $11 billion in annual revenues. Primary operations include health insurance products for employer groups and Medicare beneficiaries in eight states and Guam, serving approximately 3.4 million health plan members.

Other specialty products and operations include pharmacy and medical management, behavioral health services, life and health insurance and dental and vision services. More information on PacifiCare Health Systems can be obtained at www.pacificare.com.