Introducing Empire's new DirectShare^sm Point-of-Service (DSPOS) health plan, offering employers increased cost-share options and lower prices within the Direct POS product suite.

Effective June 1, 2004, for groups sized 2 – 50, and July 1, 2004, for groups sized 51+, Empire's new DSPOS design options include increased member cost sharing, with in-network deductibles and coinsurance for certain services.

More Choices and Lower Rates Highlight Empire's New DSPOS:

• A $30/$50 primary/specialty co-pay
• A $25/$40 primary/specialty co-pay
• In-network and out-of-network deductibles and coinsurance

Attractive Employee Plan Benefits Include the Following:

• Access to Empire's HMO Network—one of the largest local provider networks available
• No PCP referral to see in-network specialists
• In- and Out-of-network benefits
• 360º Health^sm—Empire's comprehensive health services program

Access the new benefit summaries for detailed plan design information at www.empireblue.com. Click on the "Broker" tab, then "Document Library."

Small Group quotes are available on our secure broker website at www.empireblue.com. For large group quotes, please contact Broker Relations or your Empire Sales representative.

Empire's Reimbursement Accounts offer tax savings for your groups.

Empire's Reimbursement Accounts allow employees to set aside before-tax dollars to help pay for eligible out-of-pocket medical, dependent care, mass transit commuting and/or parking expenses. Reimbursement Accounts are available to groups with 51+ eligible employees that offer Empire medical and/or hospital coverage, effective July 1, 2004.

Choice of Accounts
Empire offers four types of Reimbursement Accounts:
– Healthcare
– Dependent Care
– Mass Transit
– Parking

Mass Transit and Parking Reimbursement Accounts are available only along with a Healthcare or Dependent Care Reimbursement Account.

Groups Save on Payroll Taxes
The pretax dollars employees contribute to Reimbursement Accounts will decrease your groups' payroll taxes. Additional tax benefits include cutting retirement plan expenses and saving on other insurance premiums, such as workers' compensation or disability.

To learn more about Empire's Reimbursement Accounts please contact your Empire representative or Broker Relations.

Just a few more reasons you can be assured you are offering your clients the best HMO available...

1. For the third consecutive time, Empire's HMO and Direct HMO products earned an "Excellent" accreditation status from the National Committee for Quality Assurance (NCQA). The highest accreditation status of "Excellent" is granted only to plans that demonstrate levels of service and clinical quality that meet or exceed NCQA's rigorous requirements for consumer protection and quality improvement.
   
   
2. According to a study done by the New York State Department of Insurance, Empire has the lowest complaint ratio of all HMO plans in New York State. Empire outperformed Oxford, Aetna and United, with those carriers receiving at least 18 times more complaints.
   
   
3. Empire received the highest rating given to any HMO in the March 2004 New York Managed Care Consumer Bill of Rights Compliance Survey. This survey measured the compliance of 22 HMOs with the New York Managed Care Consumer Bill of Rights requirement to provide clinical review criteria to consumers upon written request.

Play Ball!
With the start of a new baseball season, we are excited to introduce the Empire Broker All-Stars Promotion. From April through August, we'll be rewarding the individual who sells the greatest number of new large group (51+) contracts and the individual who sells the greatest number of new small group (2 – 50) contracts with two box seat tickets to a Yankees home game.

Here's the Line-up
Two pairs of tickets each month. And there is no limit on how many times you can win. Winners will be notified via e-mail and featured in Empire Broker News.

Month Effective Date	Tickets	Winners Notified Week of
April	May Game	May 3
May	June Game	June 7
June	July Game	July 5
July	August Game	August 2
August	September Game	September 6

The Stats
Empire BlueCross BlueShield offers excellent value by providing the largest networks,* leading service and close to 70 years of experience. Obtain quotes from Empire's Broker Online Services at www.empireblue.com or call Broker Relations at 1-877-222-7666 Monday through Friday, 8:30 a.m. to 5:00 p.m.

*Network comparison data from first quarter 2003 ProAccess Database by HealthConnect Systems, including providers in 28 eastern and southeastern counties of New York and 10 bordering counties of New Jersey and Connecticut. Numbers represent site count.

Each month 2 brokers will each receive a pair of Yankees home game box seat tickets. Exact date and time of the game(s) will be communicated to the brokers once details are available. Transportation, parking, meals, etc. are the responsibility of the ticket recipient. Promotion applies to both new large and new small group contracts enrolled with the requested effective dates as outlined above. Enrollment of a group is not effective until Empire receives the complete enrollment package and reviews and accepts the application. The enrollment package must be received at least 10 business days prior to the requested effective date. Cases with split commissions arrangements and those with changes in Broker of Record are not eligible. Promotion is subject to change or may be withdrawn at any time or for any reason.

We'd like to remind you that you have until December 15, 2004, to earn an extra $1,500 or more through Empire's 2004 Small Group Broker Rewards Program.*

Eligible brokers are paid for their administrative, pre-enrollment and account support, as well as for their enrollment processing services. You'll earn

• $30 for each of the first 50 qualifying contracts up to 100.
• $40 for each of the qualifying contracts over 100.

Here's How It Works

• Sell a minimum of 50 qualifying new Empire Small Group contracts.
• Any combination of Empire Small Group medical and dental plans equaling 50 contracts is eligible.
• Sell 50 to 100 contracts, and earn $30 per contract.
• Sell more than 100 contracts, and earn $40 for each additional contract over 100.
• Bonus payouts will be made in April 2005.

There's No Limit to How Much You Can Earn Through Empire's Small Group Broker Rewards Program.

1 Empire medical = 1 contract
1 Empire dental = ¼ contract

FOR EXAMPLE:

50 CONTRACTS SOLD
50 x $30 = $1,500

125 CONTRACTS SOLD
100 x $30 = $3,000
25 x $40 = $1,000
Total = $4,000

Check Out Our Product Offerings
We have a wide selection of product offerings in the small group market, including PPO, EPO, HMO, Direct POS and the new DirectShare^sm POS. Find out why so many companies are choosing these Empire plans by visiting www.empireblue.com and clicking on the "Broker" tab.

*– Small group is 2 – 50 eligible employees.
– Payments will be made in April 2005.
– Applies to new small group business only. Eligible products include HMO, DHMO, POS, PPO and EPO medical products.
– Excludes Healthy NY and Direct Pay.
– Groups must be active as of 12/31/04 to qualify. Cases of split commission arrangements and changes to broker of record are not eligible.
– WellChoice contracts issued to a NY-based account will be counted toward the total qualifying contracts.
– This program is subject to final state approval and is subject to change due to regulatory direction.