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OWINGS MILLS, MD (February 15, 2008) - CareFirst BlueCross BlueShield (CareFirst) today announced that it has agreed to contribute up to $4 million annually to fund prescription drug coverage of individuals enrolled in the Maryland Senior Prescription Drug Assistance Program (MD SPDAP).

Through the program, CareFirst will contribute funding to cover drug costs for enrollees who enter what is commonly called the Medicare Prescription Program's "donut hole." Medicare prescription drug members enter the donut hole when their prescription drug spending (member out-of-pocket and insurer contributions combined) reaches $2,510, at which point the member pays 100 percent of drug costs until their total out-of-pocket costs reach $4,050. Once members cross this threshold, the member pays only about 5 percent of subsequent drug costs.

CareFirst's contribution to the program will help dramatically reduce the total out-of-pocket for individuals who reach the donut hole.

"Last year, we came together, to expand health care coverage in our State and make health care more affordable for 100,000 more Marylanders, including our small and family-owned businesses. But too many of our neighbors, especially our seniors, are still forced to choose between taking their prescription medications and putting food on their table," said Maryland Governor Martin O'Malley. "Today, with a $4 million commitment from CareFirst and new legislation, we are closing Maryland's donut-hole to provide prescription drug coverage to more of our neighbors and make our entire State stronger."

CareFirst currently contributes $14 million annually to fund the existing SPDAP. That money is part of a total of $23 million directed to fund health-related programs in Maryland – an amount equal to the value of CareFirst's 2 percent premium tax exemption. The MD SPDAP is a program of the Maryland Health Insurance Plan that offers eligible Maryland Medicare beneficiaries up to a $25 monthly subsidy toward their individual premium when enrolled in an approved Medicare Rx Prescription Drug Plan or Medicare Advantage Prescription Drug Plan. Since 2000, CareFirst has contributed more than $118 million to support Maryland senior prescription drug programs.

"We are pleased to work cooperatively with Governor Martin O'Malley and Delegate Pete Hammen to extend and broaden our support of the Senior Prescription Drug Assistance Program," said CareFirst President and Chief Executive Officer Chet Burrell. "It's not uncommon to hear tales of seniors who are forced to choose between paying rent or a utility bill, or purchasing needed prescription drugs. We hope that our contribution will assure that needy seniors get the drugs they need so that they can avoid being forced into choices that can compromise their health."

CareFirst worked cooperatively with Delegate Peter A. Hammen, chair of the House Health & Government Operations Committee, to structure the subsidy of donut hole coverage through the MD SPDAP. Because the MD SPDAP was created by an act of the legislature, legislation has been filed to facilitate this change to the program. If enacted, the donut hole subsidy would begin to be available to SPDAP participants starting in January 2009.

"I am proud to work with Governor O'Malley to ensure access to these important and life-saving prescriptions," said Delegate Hammen. "This important legislation will provide much needed relief for one of Maryland's most vulnerable populations – our seniors – with significant prescription costs."
Since the launch of its CareFirst Commitment initiative in 2005, CareFirst has provided more than $175 million to support public and private efforts focused on improving health care quality, access and affordability.

"In our role as Maryland's largest health insurer and in fulfilling our not-for-profit mission, CareFirst recognizes its responsibility to play an active role in addressing community health needs," said Burrell. "This contribution is just one of many ways we work to better the communities we serve."

In its 71st year of service, CareFirst, an independent licensee of the Blue Cross and Blue Shield Association, is a not-for-profit health care company which, through its affiliates and subsidiaries, offers a comprehensive portfolio of health insurance products and administrative services to more than 3.2 million individuals and groups in Maryland, the District of Columbia and Northern Virginia. Through its CareFirst Commitment initiative and other public mission activities, CareFirst supports efforts to increase the accessibility, affordability, safety and quality of health care throughout its market areas.

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