PROVIDENCE HEALTH PLAN 2005
TO OFFER MEDICARE PRESCRIPTION BENEFIT

July 7, 2005

BEAVERTON, Ore. – Providence Health Plan announced today that it has received conditional approval from the Centers for Medicare & Medicaid Services (CMS) to provide Medicare Advantage Part D prescription drug plans. PHP plans to begin offering the new benefit in January of 2006.

The Part D drug benefit was created as part of the Medicare Modernization Act of 2003. Providence will offer the Part D drug benefit as part of its ongoing commitment to provide quality health care services to people eligible for Medicare in Oregon and southwest Washington. “We’re excited about being part of the solution toward providing better access to prescription drug coverage in the communities we serve,” said Barbara Christensen, chief sales and marketing officer, Providence Health Plan.

Providence is currently working with CMS to finalize preparations for its participation in Medicare Part D. Additional information about the new Medicare prescription drug coverage can be found at this Medicare Web site: www.medicare.gov/MPCO/Static/Resources.asp.

An important part of the new benefit is the participation of the Social Security Administration (SSA), which is providing a subsidy for those with limited incomes. Up to 50 percent of the Medicare population in the United States may qualify for some portion of the assistance available through the SSA. Providence Health System and Providence Health Plan encourage people with Medicare to contact SSA to find out if they qualify. Providence Health System will provide this information to their employees to relay to their patients and families. Providence Health Plan will be holding special town hall meetings for its members this summer to spread this important message.

Information about SSA assistance for the Medicare prescription benefit is available by calling 1-800-772-1213.

Providence Health Plan provides health care coverage services to more than 200,000 adults and children in Oregon, Washington and Alaska. Providence focuses on improving health by creating access to high quality health care programs and preventive services through top-rated benefit plans that are preferred by providers and customers. Providence Health Plans is part of Providence Health System, Oregon’s largest network of health services and the state’s second-largest private employer. Visit www.providence.org/healthplans.