California Health Care Coalition Selects Blue Shield of California as Exclusive Health Plan Partner to Improve the Quality and Cost of Health Care for Its Members

Collaboration will produce higher quality, more cost-effective HMO and PPO networks for CHCC member organizations

July 19, 2007

After a competitive process, the California Health Care Coalition (CHCC) announced today that it has selected Blue Shield of California as its exclusive health plan partner to improve the quality and affordability of hospital and physician care in California. CHCC currently represents 43 public and private sector employers, unions and trust fund member organizations, with a combined membership of 3 million Californians (see list belowof CHCC member organizations).

The CHCC-Blue Shield of California collaboration will focus on building higher quality, higher efficiency HMO and PPO networks for CHCC member
consideration and enrollment beginning in 2008.

"California's health industry delivers uneven quality care and is among the most expensive in the world," said Sally Covington, Executive Director of CHCC. "We selected Blue Shield of California because it made the strongest commitment to work collaboratively with us to make needed improvements in the quality, appropriateness and cost of hospital and physician care."

Blue Shield and CHCC will work together to develop HMO and PPO networks that meet purchaser expectations for health care that is safe, effective, efficient, patient-centered, and fairly priced. Blue Shield will also provide access to wellness and other prevention and care management programs that improve health and help to reduce costs. CHCC member organizations will be able to decide if, when and how to offer these HMO and PPO networks to their own plan beneficiaries.

"We are excited to work with the California Health Care Coalition to make it easier for its members to obtain quality health care and control costs," said Janet Widmann, Vice President and General Manager of Blue Shield's Labor, Public and Strategic Accounts Sector. "Blue Shield is committed to marrying effective care with cost containment, and thereby to deliver superior value to our customers."

The high performance HMO will deliver more quality information on medical group performance to purchasers and their enrollees, and be available on both a fully insured and flex-funded basis. The high quality, high performance PPO will be available initially on a self-funded basis only. Both networks will offer access to valuable online health management resources, including the Healthy Lifestyle Rewards program, which allows members to earn cash incentives for participation in online health and wellness programs.

Continuing its efforts to contain the growth of health care costs, Blue Shield will offer these high quality, high performance HMO and PPO network products to other customers after the CHCC launch.

MEMBER ORGANIZATIONS

• California Federation of Teachers
• California Field Ironworkers Trust Funds
• California Public Employers/Employees Trust Fund Group
• California School Employees Association
• California School Employers Group (ACSA, CASBO, CSBA, SEAC)
• California Service Employees Health & Welfare Trust Fund
• California Teachers Association
• California Works Foundation
• California's Valued Trust
• Carpenters 46 Northern California Counties
• Conference Board
• City of Los Angeles Joint Labor-Management Health Benefits Committee
• Coalition of County Unions (Los Angeles)
• Coalition of Kaiser Permanente Unions
• Construction Employers Association
• General Employees Trust Fund
• Grant Joint Union High School District
• International Longshore and Warehouse Union
• Joint Benefit Trust (Teamsters)
• Laborers' N. & S. CA Health and Welfare Funds
• Los Angeles Unified School District
• Los Angeles Unified School District Health Benefits Committee
• Los Angeles College Faculty Guild-Los Angeles Community College District
• Machinists Automotive Trades, District Lodge No. 190 of Northern California
• Millwright Employers Association-Modular Installers Association
• Modesto Teachers Association
• North Sacramento School Districts Labor-Management Consortium
• Office Employees Insurance Trust Fund of California
• Operating Engineers, Local 3
• Professional and Technical Engineers, Local 21
• San Diego Electrical Health & Welfare Trust
• San Francisco Community College District/AFT Local 2121
• Santa Clara Valley Water Districts
• Schools Insurance Group of Placer and Nevada County Schools
• Self-Insured Schools of California
• SEIU, Local 1000
• SEIU-United Healthcare Workers West
• Sheet Metal Workers' Local 104 Health Care Plan
• Southern California Cement Masons Health and Welfare Trust
• Southern California Schools Voluntary Employee Benefits Association
• UC Unions (AFSCME, L3299, CUE, UC-AFT, UPTE)
• UFCW National Health and Welfare Fund
• Waste Management
• Western Health Care Coalition
  

Blue Shield of California
Blue Shield of California, an independent member of the Blue Shield Association, is a not-for-profit health plan dedicated to providing Californians with access to high quality care at a reasonable price. Founded in 1939, it now has 3.2 million members, 4,500 employees, one of the largest provider networks and more than 20 office locations, providing a wide range of commercial and government products throughout the state. The company contributes $30 million annually to the Blue Shield of California Foundation to fund nonprofit organizations that improve access to quality health care in California. Contact your local agent or broker for more information about Blue Shield products and services, or visit the Blue Shield web site at http://www.blueshieldca.com.

California Health Care Coalition
The California Health Care Coalition is a membership organization of employers, unions and health and welfare trust funds, currently representing 3 million Californians. Coalition members are determined to improve health care quality and reduce costs without losing benefits. CHCC strategies are to organize health care purchasers at the community and statewide levels, use this leverage to obtain detailed information on provider quality and costs, educate its members and the public about medically unjustified variations in performance, and form working partnerships that drive significant improvements in the quality and cost-effectiveness of hospital and physician care. Additional information about CHCC can be obtained by calling 415-567-4264 or visiting the website at http://chccnet.org.