Blue Cross and Blue Shield Plans Continue Push for Market-Based Solutions in Wake of Continued Rapid Growth of Healthcare Costs

6/11/2003

From: Chris Hamrick of Blue Cross and Blue Shield, 312-297-5954; e-mail: chris.hamrick@bcbsa.com Web: http://www.bcbs.com

CHICAGO, June 11 -- Following is a statement from Blue Cross and Blue Shield Association President and CEO Scott P. Serota on a study by the Center for Studying Health System Change's report on rising healthcare costs:

"Blue Cross and Blue Shield companies across the country are continuing to develop innovative solutions that will keep healthcare affordable now and for generations to come.

"A study released today by the Center for Studying Health System Change (HSC) reveals that in 2002 healthcare costs continued the rapid growth we've experienced in recent years. Healthcare costs for privately insured Americans jumped 9.6 percent in 2002, growing nearly four times faster than the overall U.S. economy.

"This study confirms what Blue Cross and Blue Shield Association's own research has revealed. Healthcare costs continue to rise across all segments of the industry, with hospital costs accounting for more than half of the overall growth and physician and pharmaceutical costs representing 27 percent and 22 percent of the growth respectively. These trends are having a direct impact on insurance premiums and on the pocketbooks of consumers and employers alike.

"There are things we can do now to slow down these alarming trends and keep healthcare affordable. We can save billions of dollars if hospitals, physicians and insurers work together to improve and make consistent the quality of care. For example, Blue Plans across the country are working with hospitals and physicians to design contracts that reward better quality care. We know that better quality care leads to better health for consumers with greater efficiency and affordability.

"The Blue Cross and Blue Shield companies look forward to working closely with hospitals, physicians and other partners across the healthcare industry to identify solutions that are working now and address rising costs. But we cannot afford to wait -- access to quality, affordable healthcare for all Americans is too important."

The Blue Cross and Blue Shield Association is comprised of 42 independent, locally operated Blue Cross and Blue Shield plans that collectively provide health care coverage for more than 85 million -- nearly one in three -- Americans. For more information on the Blue Cross and Blue Shield Association and its Plans, visit http://www.bcbs.com.