BLUE CROSS AND BLUE SHIELD OF TEXAS TAPPED BY STATE EMPLOYEES RETIREMENT SYSTEM TO PROVIDE HEALTH INSURANCE COVERAGE

Richardson, TX, January 19, 2005– Blue Cross and Blue Shield of Texas announced today that it has been selected to continue administering the HealthSelect program for the Employees Retirement System (ERS) of Texas. Following a competitive bidding process, Blue Cross was awarded the three year contract which covers more than 450,000 members and their dependents.

We are pleased that ERS has elected to continue the relationship that Blue Cross has established with the board and its members,” says Pat Hemingway Hall, president, Blue Cross and Blue Shield of Texas.We look forward to continuing to provide this valuable client with access to affordable, quality health care and top-notch service.

Blue Cross will continue to offer ERS members access to a portfolio of medical care management solutions, a dedicated service unit consisting of approximately 500 employees, investments in state-of-the-art claims processing systems and broad access to affordable care. As the largest health plan in the state, Blue Cross’ PPO/POS network consisting of over 38,000 physicians and other professional providers at over 400 hospitals, will continue to be available to State of Texas employees, retirees and their dependents.

Blue Cross and Blue Shield of Texas is the only statewide, non-investor owned health coverage provider in Texas, serving more than 3.5 million members in all 254 counties. Blue Cross and Blue Shield of Texas is a division of Health Care Service Corporation, a Mutual Legal Reserve Company, an Independent Licensee of the Blue Cross and Blue Shield Association.