Premera Blue Cross Supports National Blue Cross Blue Shield Association "Pathways to Covering America" Proposal

Business Wire, Jan 23, 2008

MOUNTLAKE TERRACE, Wash. -- Premera Blue Cross issued the following statement on the Blue Cross Blue Shield Association "Pathways to Covering America" report.

"Pathways to Covering America is a prescription for a more effective and integrated health-care system that builds on the vision and accomplishments of independent local Blue Cross Blue Shield licensees nationwide," said Premera Blue Cross CEO Gubby Barlow. "We support the broad goals of the report, as well as many of the specific proposals - and are collaborating in our own communities with physicians, customers and members to achieve them."

"The BCBSA outlines four key initiatives to improve healthcare delivery and quality: expanding research that clarifies which medical care options are most effective; creating new incentives that promote higher-quality medical care; engaging and empowering consumers and providers to make more informed decisions; and promoting health and wellness. The proposal also describes ways of expanding coverage to the uninsured through a series of public-private solutions," Barlow said.

The BCBSA proposal aligns broadly with Premera's vision of a solution based on "health accountability," which Premera has promoted in the communities it serves as a means of improving health and achieving a more sustainable U.S. healthcare system.

"Premera is committed to better health for our members and more sustainable healthcare costs," Barlow said. "We are working with members and employer groups to mobilize members to take greater control of their health, and actively supporting providers in their efforts to improve the quality and cost-effectiveness of care."

"Healthcare costs are rising much faster than our overall economy - leading to a bankrupting of our system if these costs trends continue unchecked," Barlow said. "The long-term solution involves bringing healthcare cost trends into line with overall economic growth. This is possible by focusing in three areas:

* Prevent illness from occurring in the first place - Studies estimate 25 percent of healthcare costs could be saved by lifestyle changes that could dramatically reduce the incidence of chronic medical conditions including many forms of heart disease, diabetes and cancer.

* When medical care is needed, stick with high-quality, cost-effective care based on existing medical evidence and best practices - Studies suggest 30 percent of healthcare costs could be eliminated with no reduction in quality if the entire country practiced in line with the most cost-effective regions of the United States.

* Expand our knowledge of what works best - This includes encouraging comparative effectiveness research for new and existing drugs, devices and procedures, to drive better informed decisions about treatment options, benefit design and healthcare payment policy."

About Premera Blue Cross.

Our mission is to provide peace of mind to our members about their health-care coverage. We provide health care coverage and related services to more than 1.3 million people. Premera Blue Cross has operated in Washington since 1933, and Alaska since 1952. Premera Blue Cross is an independent licensee of the Blue Cross Blue Shield Association.

Premera Blue Cross is a member of a family of companies based in Mountlake Terrace, Washington, that provide health, life, vision, dental, and long-term care insurance, and other related services. In the J. D. Power 2007 National Health Insurance Plan Satisfaction Study, Premera Blue Cross ranked highest among health plans (regional and national companies) serving the western U.S. This year was the first time J. D. Power surveyed consumers about health plans.