Blue Cross Lowers Premiums, Covers More Drugs Under New Medicare Prescription Drug Offering

Insurer to Cover All Medicare-Approved Prescription Drugs

December 19, 2006

Seniors will have access to more covered prescription drugs – including all Medicare-approved drugs – for reduced premium rates under Blue Cross and Blue Shield of Louisiana's new Medicare prescription drug offering for 2007, the insurer announced today.

With less than two weeks left in the annual open enrollment period, the state's oldest and largest health insurer says it has strengthened its popular Medicare prescription drug plan, called RxBLUE, by expanding the number of drugs offered while reducing the premium cost to subscribers.

"The new RxBLUE gives our customers more covered drugs at reduced premiums, while offering access to a wide range of pharmacies across Louisiana," said Gery J. Barry, Blue Cross' president and CEO. "This 'new RxBLUE' is just another way we're fulfilling our mission to provide Louisianians with affordable access to quality health care."

Before the Medicare Part D program was launched in 2005 by the federal government, no drug coverage was available to Medicare beneficiaries through Medicare unless their medication was prescribed during a hospital stay. Medicare Part A provides hospital coverage, Part B covers physician costs, and since January 2006, Part D covers prescription drugs. The program could save Medicare beneficiaries an average of $700 per year on out-of-pocket drug costs.

Blue Cross and Blue Shield of Louisiana enrolled more than 8,400 seniors in its RxBLUE 2006 benefit plan. Now, Barry says, the 2007 benefit plan is even better. Blue Cross has:

• expanded its formulary to include all Medicare-approved prescription drugs in its list of covered drugs,
• simplified the plan with copayments rather than coinsurance,
• included a Value Generic offering with a $0 copayment for certain generics, and
• extended its RxBLUE customer service hours to seven days a week.

RxBLUE also features first-dollar coverage – meaning no deductible needs to be met before benefits are paid – and low copayments at the pharmacy counter.

Generic alternatives for brand-name drugs are provided whenever possible. Many generic drugs will cost RxBLUE members no out-of-pocket payment, Barry said, with others costing only $4.

The annual enrollment period officially began Nov. 15, 2006, for those who want to enroll in or switch to a new Medicare prescription drug program with an effective date of Jan. 1, 2007. Beneficiaries have until Dec. 31, 2006, to sign up.

Medicare beneficiaries interested in more information on RxBLUE should contact an authorized Blue Cross agent who is specially trained in the new Medicare prescription drug program, or call 1-800-593-6971. They can also log onto www.bcbsla.com/rxblue/. A TTY number has been set up for hearing-impaired individuals at 1-800-947-5277.

Free personalized counseling is also available to Louisiana Medicare recipients from the State Health Insurance Information Assistance Program (SHIIP) and other local and community-based organizations. The toll-free number for Louisiana's SHIIP office is 1-800-259-5301.

Blue Cross and Blue Shield of Louisiana is Louisiana-owned and -operated. Marking its 72nd anniversary this year, the company is an independent licensee of the Blue Cross and Blue Shield Association. It is a tax-paying mutual company, owned by its policyholders.

Headquartered in Baton Rouge, Blue Cross and Blue Shield of Louisiana also has district offices in Alexandria, Houma, Lafayette, Lake Charles, Monroe, New Orleans and Shreveport. The company’s subsidiaries include HMO Louisiana, Inc. and Southern National Life Insurance Company, Inc. For more information, visit the company’s website at www.bcbsla.com.