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Medicare Part D Contract Awarded to Medica

Coverage Available Through Medica's Medicare Cost and Advantage Plans

Medica has been awarded a Medicare Part D contract by the Centers for Medicare and Medicaid Services (CMS). Medica will be offering federally approved Medicare Part D coverage through all of its Medicare plans including Medica Prime Solution® and Medica Advantage Solution(SM).

The coverage will be available to 98 percent of Medicare-eligible people in Medica's service area and will cost less than the $32 per month premium targeted by CMS. The Medicare Part D coverage premium is in addition to the premium for health care coverage. Additional, specific information about the Medicare Part D offerings by Medica will be made available after October 1, 2006. CMS rules do not allow health plans to begin marketing their Medicare Part D products prior to that date.

"Medicare Part D will be a valuable benefit to many, many seniors," said Mark Owen, vice president and general manager of the Medica Center for Healthy Aging and Medica's Individual Business. "We believe we have a variety of comprehensive, cost-effective health plan options that will meet just about any coverage need."

Education Program

As part of its commitment to educating seniors, Medica has launched an education initiative to inform seniors and/or their caregivers about the many details of Medicare Part D. The initiative includes more than 600 Medicare Part D educational meetings to be held through mid-December in communities throughout its service area in Minnesota, North Dakota, South Dakota and Wisconsin. Medica also has published a booklet, "The Simple Facts," to explain the program in greater detail. The booklet is available by calling Medica's Center for Healthy Aging at 1-800-906-5432.

Health plans will begin marketing their Medicare Part D programs starting October 1, 2005. After that date, it is expected that seniors will be flooded with materials about specific plans offered by health insurers. The Medica initiative is designed to arm seniors with information that will help them make wise choices about which Medicare Part D plans would be appropriate for them.

Medicare Part D is a voluntary prescription drug coverage program for the more than 40 million Americans eligible for Medicare. It is part of the Medicare Prescription Drug Improvement and Modernization Act passed in 2003. It is designed primarily to help seniors save money on the cost of their prescription drugs and to safeguard against unforeseen catastrophic drug costs they might otherwise incur.

Although it is a federal program, those wishing to enroll in Medicare Part D must do so through private health insurers such as Medica, who will administer the benefit. The program will go into effect on January 1, 2006, with an initial enrollment period running between November 15, 2005 and May 15, 2006. Those currently eligible for the program must enroll during this period to avoid paying a monthly penalty. Following the initial enrollment period, eligible individuals may enroll in Medicare Part D during an annual enrollment period from November 15 to December 31.

About the Medica Center for Healthy Aging

The Medica Center for Healthy Aging is a comprehensive resource dedicated to serving the health care needs of the senior and disabled population living in Minnesota and bordering communities in North Dakota, South Dakota and Wisconsin. The Center's staff provides resources for Medica members looking to find the best short- or long-term health care coverage to fit their needs.

About Medica

Medica is Minnesota's largest HMO, largest PPO, and leading non-profit and independent provider of health plans. Medica has 1.2 million members and 24,000 providers in a regional health care network service area that includes 98 percent of Minnesotans and a growing number of adjoining counties in Wisconsin, North Dakota and South Dakota. Medica also offers national network coverage to employers who also have employees outside the Medica regional network.

Medica has the highest accreditation status, Excellent, from the National Committee for Quality Assurance (NCQA®) for its Minnesota and North Dakota Medicaid HMO plans and commercial health plans.

Medica® is a registered service mark of Medica Health Plans. “Medica” refers to the family of health plan businesses that includes Medica Holding Company, Medica Health Plans, Medica Health Plans of Wisconsin, Medica Insurance Company, Medica Self-Insured, Medica Foundation, and Medica Affiliated Services.

Distributed by Market Wire