PacifiCare Behavioral Health To Add 800,000 New Members Through Agreement With Harvard Pilgrim Health

SANTA ANA, Calif., June 14 /PRNewswire-FirstCall/ -- PacifiCare Behavioral Health, Inc. (PBH), a national managed behavioral health care organization and subsidiary of PacifiCare Health Systems, Inc. , has been selected by Harvard Pilgrim Health Care of Wellesley, Mass., to provide comprehensive behavioral health care benefits for 800,000 members in Massachusetts, New Hampshire, Maine and Rhode Island.

PBH will provide inpatient and outpatient mental health and chemical dependency benefits for Harvard Pilgrim's commercial and Medicare health plan members.

The multi-year agreement, effective Jan. 1, 2005, aligns with PBH's expansion plans to diversify its customer portfolio, particularly in the eastern United States, where, with the addition of Harvard Pilgrim, 20 percent of PBH's total membership now resides. PBH currently serves approximately 4.1 million members.

"We set the bar very high in reviewing potential behavioral health care partners," said Roberta Herman, M.D., Harvard Pilgrim's senior vice president and chief medical officer. "PacifiCare Behavioral Health stood out as the clear best choice because of its ability to strengthen the clinical and administrative operations that support our behavioral health benefits. We expect this new relationship to result in continuous improvements in service and quality for our members and providers."

Harvard Pilgrim boasts solid financial performance, along with strong membership growth and national recognition for outstanding quality and member satisfaction. It is the only health plan in the country to be rated among the Top 10 for both member satisfaction and clinical effectiveness, according to a report released by the National Committee for Quality Assurance (NCQA) in 2003.

"PacifiCare Behavioral Health and Harvard Pilgrim begin this relationship with much in common," said Howard G. Phanstiel, PacifiCare Health Systems president and chief executive officer. "All of PBH's customer service centers have earned NCQA's highest level of accreditation available to managed behavioral health care organizations, and, like Harvard Pilgrim, PBH has experienced consistent growth and financial stability."

Under the direction of PBH President and Chief Executive Officer Jerry Vaccaro, M.D., PBH's expansion into the eastern U.S. began in 2002 with the addition of Pennsylvania-based Keystone Health Plan Central.

"This new partnership, along with a growing list of customers in the eastern U.S., demonstrates that our practice of delivering innovative behavioral health care services and pay-for-performance results is one that resonates with health plans and employers nationwide," said Dr. Vaccaro. "We began our expansion several years ago with the goal of supporting quality health plans like Harvard Pilgrim, and we're seeing the positive results."

About Harvard Pilgrim Health Care

Harvard Pilgrim Health Care is a not-for-profit health plan operating in Massachusetts, New Hampshire and Maine with a network of more than 22,000 doctors and 130 hospitals. Harvard Pilgrim has consistently been named one of the nation's top-ranked health plans for quality and member satisfaction by independent rating organizations and consumer publications. More information about Harvard Pilgrim Health Care is available at http://www.harvardpilgrim.org/.

About PacifiCare Behavioral Health

PacifiCare Behavioral Health, Inc. provides mental health, chemical dependency and employee assistance services to covered members and maintains a national network of behavioral health care practitioners. All PacifiCare Behavioral Health service centers hold three-year, Full Accreditation from the National Committee for Quality Assurance (NCQA) as well as URAC Health Utilization Management Accreditation. PacifiCare Behavioral Health is a wholly owned subsidiary of PacifiCare Health Systems , with clients including health plans, union trust funds, employers, school districts and public sector agencies. More information on PacifiCare Behavioral Health can be obtained at http://www.pbhi.com/.

About PacifiCare Health Systems

PacifiCare Health Systems is one of the nation's largest consumer health organizations with more than 3 million health plan members and approximately 9 million specialty plan members nationwide. PacifiCare offers individuals, employers and Medicare beneficiaries a variety of consumer-driven health care and life insurance products. Currently, more than 99 percent of PacifiCare's commercial health plan members are enrolled in plans that have received Excellent Accreditation by the National Committee for Quality Assurance (NCQA). PacifiCare's specialty operations include behavioral health, dental and vision, and complete pharmacy and medical management through its wholly owned subsidiary, Prescription Solutions. More information on PacifiCare Health Systems is available at http://www.pacificare.com/.

For further information, please contact: Dagmar King of PacifiCare Behavioral Health, +1-714-445-0453, dagmar.king@phs.com; or Tyler Mason, +1-714-226-3530, tyler.mason@phs.com, or Suzanne Shirley, +1-714-226-3470, suzanne.shirley@phs.com, both of PacifiCare Health Systems.

PacifiCare Behavioral Health, Inc.

CONTACT: Dagmar King of PacifiCare Behavioral Health, +1-714-445-0453,dagmar.king@phs.com; or Tyler Mason, +1-714-226-3530, tyler.mason@phs.com, orSuzanne Shirley, +1-714-226-3470, suzanne.shirley@phs.com, both of PacifiCareHealth Systems

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