REDUCED PREMIUMS TO BE OFFERED FOR THE BLUES’ MEDICARE PROGRAMS

Harrisburg, Dec. 18, 2003 – Constituents enrolled in a Medicare plan through Independence Blue Cross may see lower premiums in 2004, according to state Sen. Connie Williams.

“The company has announced that it is seeking the necessary approvals to again offer a zero-premium Medicare product for Philadelphians and reduced premiums and rolled-back cost-sharing for Medicare products sold in Delaware, Montgomery, Bucks and Chester counties,” Williams said.

“If the plan is approved, the premium adjustments could be made as early as March.”

The new Philadelphia zero-premium Medicare product, Keystone 65 Value, is scheduled to be available to seniors at no cost beginning March 1, 2004. Before this can happen, however, Independence Blue Cross must obtain approval from the Centers for Medicare and Medicaid Services. Final details on the plans for Delaware, Montgomery, Bucks and Chester counties will be announced in the coming weeks and also will require similar approvals before they can take effect.

Changes were made possible, because of provisions included in the federal government’s new Medicare reform legislation. The legislation increases reimbursements to insurers who offer Medicare+Choice products and allows those companies to pass the savings along to consumers.

According to information from Independence Blue Cross, it was lower federal reimbursements that led many insurers selling the Medicare+Choice products to leave the area over the past few years.

Seniors should watch for additional information about the proposed changes in coming weeks.