Consider the facts:
Look at all providers in our PPO/EPO network, and you will see that Empire BlueCross BlueShield continues to lead the competition. We hold the lead not only in New York magazine's yearly list of "Best Doctors in New York,"¹ but also in U.S. News & World Report's "Best Hospitals"² for both 2003 and 2004.

Consider these 2004 figures:
	Network Size3	"Best" Doctors	"Best" Hospitals
Empire BlueCross BlueShield	59,355	61%	94%
Oxford	48,808	58%	77%
Aetna	40,282	41%	80%
United Healthcare	44,027	49%	76%

We score with physicians, too.
Of our participating network physicians, 85% would recommend us to other physicians.⁴

So, for the record, remember...
when you consider ALL the facts, you've got to consider us.

New products will feature lower premiums for employers, tax benefits for employees
Beginning January 2005, Empire BlueCross BlueShield will offer a new suite of consumer directed health care (CDHC) plans designed to lower premiums for employers and involve consumers more directly in the cost of their healthcare. The new CDHC products will be offered to large employer groups for January 1, 2005, effective dates (subject to regulatory approval) and to self-insured groups.

Employees gain greater control over healthcare decisions and costs
CDHC plans are consumer-driven health plans that offer more control over healthcare decisions. It's a matter of placing the dollars and the decision-making regarding members' health and well-being into their own hands.

Employers gain lower costs
By increasing consumer participation in healthcare decisions and costs, CDHC increases the potential for significantly reduced employer costs — without compromising quality, service excellence or the perceived value of benefits.

A complete solution to deliver on the promises of CDHC

• Flexible plans designed on our existing cost-effective PPO platform
• High-deductible designs that meet Health Savings Account (HSA) requirements
• A variety of funding arrangements and tools, including HSAs, Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs)
• The ability to promote wellness by providing 100% coverage for preventive care services
• Integrated medical and pharmacy deductibles
• Innovative health services and support programs to help employees become more engaged health consumers – including information, decision tools and 24/7 telephone access

Empire's relationship with Lumenos brings deep CDHC experience
Empire has entered into a multiyear agreement with Lumenos, Inc. to help deliver cutting-edge CDHC products to Empire's customers. Lumenos brings the experience of a best-in-breed pioneer with 4+ years of managing CDHC plans. Lumenos will provide administrative services to Empire's CDHC groups with HRAs to offer a seamless service experience.

Let us show you how we can meet your clients' needs with a combination of value and choice unsurpassed in the marketplace today. Call your Empire service representative for more information.

Effective October 1, 2004, for groups sized 51+, Empire is introducing new design options for its EPO and PPO plans to include increased member cost sharing and lower employer prices.

More Choices and Lower Rates
Empire's new plan designs include the following:

• Larger out-of-network deductibles and more coinsurance options for our 100% in-network PPO plan
• Introduction of in-network deductibles ranging from $250 to $1000 for over 90% and 80% in-network PPO and EPO plans

Attractive Employee Benefits
Your clients' employees will enjoy plan benefits such as the following:

• Access to Empire's PPO Network, one of the largest local networks available, as well as access to the nationwide BlueCard^® PPO network
• No primary care physician referral
• In- and out-of-network benefits
• 360º Health^sm — Empire's comprehensive health services program

To quote these new plan options, please contact your Empire representative.

Effective October 1, 2004, Empire is introducing new rider options for groups sized 2 – 50 and 51+.

More Choices Highlight Empire's New Rider Option

• All products will now have a $50 drug deductible
• Introduction of a $5 and $10 vision co-pay as well as a twelve and 24-month exam option
• Inclusion of a new medical exam and deeper eyewear discounts

These new rider options provide groups with greater flexibility when choosing a plan by allowing more options to buy up or down. Vision rider enhancements are for all large group products but only for HMO, Direct HMO, DirectShare POS and Direct POS in the small group market.

To quote these new plan options, please contact your Empire representative.

From May 22 through May 25 2005, our top 30 producers will experience the land of spicy music and melodic foods, better known as New Orleans. They'll be staying at one of the top 100 Best Hotels in the U.S. according to Condé Nast Travelers and Travel & Leisure magazines — all courtesy of Empire.

To acknowledge their top performance, we give our brokers the opportunity to participate in a cutting-edge seminar with Empire senior management, and of course, they will also have plenty of time to kick back and let the good times roll. They'll golf on a world-class course, swim, soak in private Jacuzzis and come home with great memories and learning.

Here's how to qualify:

• The top 30 producers from each of our five regions will be chosen according to a predetermined allotment.
• You must be one of the top 30 producers of Empire BlueCross BlueShield contracts for February 1, 2004, through January 31, 2005 effective dates.*
• This year we are reserving spots for our Small Group brokers, so everyone has a chance to qualify.

Keep selling Empire group contracts — and start packing!
Winners will be notified in March 2005. We hope to see you there.

*Promotion is subject to change or may be withdrawn at Empire's discretion.

• 25% Increase Now In Effect for Large Group Rate Spread Guidelines
  Empire will now allow a 25% rate spread when offering your groups allowable product combinations in the large group market. These include the following:
  
  

  – PPO/EPO		– Hi/Low PPO
  – PPO/POS		– Hi/Low EPO
  – PPO/HMO		– Hi/Low POS
  – EPO/POS		– Hi/Low HMO

  
  To quote any of Empire's products for groups 51+ please contact your Empire representative.
  
  

• Important New HIPAA Requirement — Act Now!
  New security rule mandates for the Health Insurance Portability and Accountability Act (HIPAA) require that Empire now obtain an updated Business Associate Agreement (BAA) from our brokers and brokerage firms. All brokers for whom we have an e-mail address and who are licensed with Empire have received a revised BAA via e-mail. Those brokers for whom we do not have an e-mail address will soon receive a notification via postage mail.
  
  Please respond promptly to our e-mail
  If you have not already done so, please complete the online form and reply. Your prompt attention will allow us to keep your records up to date.

• Subproducers: Act Now  to Access Our Enhanced Website
  Within the next few months, Empire will relaunch an enhanced Broker Online Services website at www.empireblue.com, also available to subproducers. As part of this launch, users will be able to view renewal information for their clients and perform renewal transactions online.
  
  In order to maintain high security standards, each user will be authenticated by the system.
  
  Please fax us the following information:
  Company's name
  Subproducer's name
  Subproducer's date of birth
  Subproducer's license number (not the corporate license number)
  
  Send your fax to Broker Relations at 1-718-312-6006. If you have any questions, please call us at 1-877-222-7666, option 3.
  
  
  • For Speedy New Group Processing, Please Ensure the Following:
  • All applications (group and member) are complete and signed by the group
  • All credentialing information is submitted (current NYS45, K-1s, etc.) with the package
  • A first month premium check is submitted along with the package
  
  For guidelines for small group submissions, access our Guidelines for Small Groups at www.empireblue.com. Or, you can call Broker Relations at 1-877-222-7666, option 1.