WellChoice Announces Medicare+Choice HMO Premium Reductions Due to Medicare Modernization Act of 2003.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 30, 2004

WellChoice, Inc. (NYSE: WC) today announced that its primary operating subsidiary, Empire Blue Cross Blue Shield, has applied to the Centers for Medicare and Medicaid Services for approval to lower monthly premiums on its Medicare+Choice HMO, Senior Plan, beginning March 1, 2004.

The Medicare Modernization Act passed by Congress late last year increased federal reimbursements to health plans under the Medicare+Choice program and helped to offset some of the geographic inequity in reimbursement levels that has disadvantaged Medicare HMO beneficiaries in Nassau, Suffolk, Westchester and Rockland counties over the past several years. Rates for the program are set on a county-by-county basis.

Empire currently offers a Medicare+Choice HMO to eligible Medicare beneficiaries in New York City, as well as Nassau, Suffolk, Westchester and Rockland counties. In Westchester and Rockland counties, the current $95 monthly premium will be reduced to $0. The new rate for eligible Medicare beneficiaries residing in Nassau County will be $22.00, a reduction of 84% from the current premium of $140. In Suffolk County the new rate will be $62, and represents a 56% decrease from current rates. WellChoice will also use the additional funding in New York City to enhance the benefits provided under the company's two Medicare+Choice HMO plans offered in those counties.

WellChoice, Inc. is the parent company of the largest health insurer in the State of New York, based on PPO and HMO membership. WellChoice, through its Empire Blue Cross Blue Shield subsidiaries, has the exclusive right to use the Blue Cross and Blue Shield names and marks in 10 downstate New York counties and one or both of these names and marks in selected counties in upstate New York. WellChoice offers a broad portfolio of products, including managed care and ...