CYPRESS, Calif., Sept. 12 /PRNewswire-FirstCall/ -- PacifiCare Health Systems Inc. entered into a series of exclusive agreements to distribute its Medicare Part D prescription drug plans through a national network of senior-focused insurance companies and independent insurance brokerage organizations.
These partnerships give PacifiCare exclusive access to more than 1.5 million current Medigap and other senior insurance policyholders and preferred access to millions more prospective Part D consumers nationwide.
PacifiCare’s national network of recognized senior-focused insurance companies includes American Republic Insurance Company, AEGON, Baltimore Life, Mutual Protective/Medico Life Insurance, Sterling Investors and United Commercial Travelers as well as other regional and local carriers. PacifiCare and its partners will utilize co-branding strategies and coordinated marketing efforts to educate and enroll seniors in its Medicare Part D prescription drug plans.
PacifiCare’s prescription drug plans will be marketed under the name Prescription Solutions from PacifiCare, or co-branded with the partner insurance companies’ names, and begin delivering prescription drug benefits on Jan. 1, 2006, when the Medicare Part D benefit is set to take effect.
“Our strategy unites PacifiCare’s decades of experience in successfully serving seniors with our partners’ extensive distribution reach, sales expertise and existing relationships with policyholders,” said Jacqueline Kosecoff, Ph.D., PacifiCare’s executive vice president, Specialty Companies. “We believe that our Medicare Part D prescription drug plans will strongly appeal to millions of seniors who currently need access to affordable, quality drug benefits, while our distribution network creates a powerful platform that will directly connect PacifiCare with consumers.”
PacifiCare expects to implement additional Part D joint-marketing relationships with senior-related companies and senior affinity groups before Part D marketing begins in October, according to David Spivack, senior vice president of Prescription Solutions from PacifiCare.
“We believe we will have some of the best product offerings available for seniors to choose from,” he said. “The key to our success will be to establish a committed distribution network that seniors can trust and rely on.”
“PacifiCare’s reputation in the senior market, wide geographic coverage, knowledge of the Part D landscape and experience in managing prescription drug programs we believe make PacifiCare the right choice for our customers,” said Michael E. Abbott, president and chief executive officer of American Republic Insurance Company. “Our agreement with PacifiCare enables American Republic to offer our policyholders and prospective customers quality choices in Part D prescription drug coverage that we feel offers an exceptional combination of simplicity, flexibility and affordability.”
PacifiCare has also signed exclusive agreements with several of the country’s largest independent insurance brokerage organizations -- or field marketing organizations -- that support general agents and independent brokers to sell its Medicare Part D prescription drug plans and other PacifiCare senior products including its Medicare Advantage Prescription Drug (MA-PD) and Secure Horizons Direct private fee-for-service plans. Many of the field marketing organizations’ agents already work closely with PacifiCare and have been successfully selling the MA-PD and private fee-for-service plans.
“We’re very excited about the contribution our brokers and agents have been able to add to our growth in 2005,” said Kathy Feeny, PacifiCare’s executive vice president of Secure Horizons. “We believe their expertise and presence in our markets will make for a very successful 2006.”
This distribution arm is expected to extend PacifiCare’s market reach, deepen its penetration and enhance its own direct-to-consumer marketing campaigns. These agreements, in addition to the network of insurance companies, will leverage the power of a licensed national sales force of up to 30,000 brokers and agents and establish PacifiCare’s presence in markets across the United States.
“These contracts will culminate in a nationwide effort to ensure our broker and senior insurance carrier partners are licensed, trained, certified and administratively supported to sell PacifiCare’s myriad senior products,” said Patti Tucker, vice president, Sales & Distribution for Prescription Solutions from PacifiCare. “By establishing a strong and ready foundation, we believe we are well-prepared to immediately begin serving seniors’ prescription drug needs. We will take steps to ensure that our new partners have everything they need to be successful.”
In March, PacifiCare announced it intends to participate nationwide in the federal government’s new Medicare Part D prescription drug program. According to Kosecoff, PacifiCare anticipates that -- pending the signing of contracts with the Centers for Medicare & Medicaid Services (CMS) -- it will be able to offer Part D prescription drug plans in all 34 regions established by CMS.
“By joining forces with our nationwide insurance and broker partners, we have taken an important step in our effort to transform PacifiCare into a national consumer health organization,” said Howard Phanstiel, PacifiCare’s chairman and CEO.
About PacifiCare
PacifiCare Health Systems is one of the nation’s largest consumer health organizations with nearly 3.3 million health plan members and approximately 11.3 million specialty plan members nationwide. PacifiCare offers individuals, employers and Medicare beneficiaries a variety of consumer-driven health care and life insurance products. Specialty plan operations include behavioral health, dental and vision, and complete pharmacy benefit management through its wholly owned subsidiary, Prescription Solutions. More information on PacifiCare Health Systems is available at www.pacificare.com.
PacifiCare Health Systems Inc.
CONTACT: Dan Miller, +1-714-226-3726, dan.miller@phs.com, or CherylRandolph, +1-714-226-3441, cheryl.randolph@phs.com, both of PacifiCareHealth Systems Inc. Media Relations
Web site: http://www.pacificare.com//
