BLUE MEDICARE PPO TO BE AVAILABLE IN FOUR HOUSTON-AREA AND EL PASO COUNTIES
Medicare Advantage Plans to Offer Seniors More Health Plan Choices and Greater Savings.

July 7, 2005, Richardson, Texas -- Blue Cross and Blue Shield of Texas today announced approval has been granted to offer Blue Medicare PPO in four Houston-area counties (Harris, Montgomery, Jefferson, Mainland Galveston) and in El Paso County, effective Aug. 1, 2005.  

Blue Medicare PPO will be offered by HCSC Insurance Services Company (HISC), a wholly owned subsidiary of Health Care Service Corporation, a Mutual Legal Reserve Company (HCSC).  Blue Cross and Blue Shield of Texas is a Division of HCSC.

“This is a tremendous opportunity to offer seniors a new, individual insurance product which includes greater flexibility and greater choice,” says Jackie Hamilton, vice president, Government Business, HISC.  “Blue Medicare PPO, a Medicare Advantage Preferred Provider Organization, will have features such as enhanced Medicare-approved benefits, office visit co-payments, limited drug coverage and preventive care — for a cost of $83 per month for all ages and service areas.”

Medicare Advantage plans are one of the many changes resulting from the Medicare Modernization Act of 2003.  In addition to broader health coverage choices, Medicare Advantage plans will offer Medicare beneficiaries more benefits and greater savings than original Medicare plans.  These plans are of particular interest to both the current Medicare population and the baby boomer generation, whose explosion into the senior/Medicare ranks is much-anticipated. 

HISC received approval of its application to offer a local Medicare Advantage plan from the Centers for Medicare & Medicaid Services (CMS) late last week.  In addition, HISC filed an application with CMS in March 2005, for a Medicare Part D prescription drug plan.  CMS expects to announce approved Part D plans later this summer for benefits beginning in January 2006. 

Under Medicare Advantage PPO plans such as Blue Medicare PPO, enrollees can obtain eligible services from non-network doctors, specialists, or hospitals without referral.  However, out-of-pocket costs may be higher than the cost of eligible services received from network providers.  Blue Medicare PPO also limits the maximum amount that seniors pay for care (out-of-pocket maximum) for both in-network and out-of-network services.      

Blue Cross and Blue Shield of Texas is a Division of Health Care Service Corporation, a Mutual Legal Reserve Company (HCSC), an independent licensee of the Blue Cross and Blue Shield Association, which is an Association of Independent Blue Cross and Blue Shield Plans.  HISC is a wholly owned subsidiary of HCSC.  HISC is also an independent licensee of the Blue Cross and Blue Shield Association.

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