Blue Cross Blue Shield of Arizona Introduces New Health Plan for Small Businesses

Business Wire, Oct 1, 2007

BlueSolutions[R] Offers Coverage at Lower Rates for Qualified Small Businesses

PHOENIX -- Blue Cross Blue Shield of Arizona today introduced a new health plan that makes it easier for small businesses to offer health insurance benefits to their employees. BlueSolutions([R]) is Arizona's first private market offering of a health plan in response to "mandate lite" state legislation passed in 2006. The plan enables business owners with between 2 and 50 employees to offer employer-sponsored health insurance to employees through a lower-premium, high-deductible health insurance plan. Such businesses are eligible if they have gone without insurance for at least six months before applying.

"Health insurance is an employee benefit that can result in more satisfied employees, less personnel turnover and better productivity," said Richard L. Boals, president and CEO of Blue Cross Blue Shield of Arizona. "BlueSolutions is a direct response to demand from small business owners for a lower-cost health insurance coverage option that provides employers and employees with financial protection from major medical costs."

Last year, the Arizona Legislature passed and Gov. Janet Napolitano signed House Bill 2698, allowing health insurance companies to offer more flexible medical plans to uninsured small businesses with between 2 and 50 employees. The bill lowers health care costs to businesses by reducing benefit mandates - those state requirements on health insurers to include certain benefits in their insurance plans before they can be legally sold.

Unlike many catastrophic, hospital, surgical or other limited benefit plans, BlueSolutions covers a broad range of services, including urgent care, maternity and well care. The plan also include copays for in-network primary care physician visits and copays for many covered generic prescription medications.

BlueSolutions includes access fees for emergency room visits, in-patient hospital visits and certain radiological services. Some services such as behavioral and mental health treatment, alcohol and substance abuse treatment, and chiropractic services are not covered under the BlueSolutions plan.

BlueSolutions is Blue Cross Blue Shield of Arizona's least expensive health plan for businesses. The lower-premium, high-deductible PPO version is available with $2,500 and $5,000 deductibles.

"Blue Cross Blue Shield of Arizona is pleased to lead the way to more affordable health insurance by offering the first private market response to the state mandate lite legislation," said Boals. "BlueSolutions is the latest result of our efforts to offer more affordable health insurance options to meet the needs of Arizonans."

BlueSolutions gives participants the freedom to choose from both in-network and out-of-network health care providers. Blue Cross Blue Shield of Arizona's provider network is among the largest in Arizona, with more than 13,000 individual providers of health care products and services.

About Blue Cross Blue Shield of Arizona

Blue Cross Blue Shield of Arizona (BCBSAZ), an independent licensee of the Blue Cross and Blue Shield Association, is the largest Arizona-based health insurance company. The not-for-profit company was founded in 1939 and provides health insurance products, services or networks to more than 1.1 million individuals. With offices in Phoenix, Flagstaff, Tempe and Tucson, the company employs more than 1,500 Arizonans. For information about BCBSAZ and its community programs such as Walk On!, visit azblue.com.