PacifiCare to Expand Secure Horizons Private Fee-for-Service Plans to 1,500 Counties in 2006; Part D Prescription Drug Coverage

* Expansion Brings Affordable, Flexible Health Care Coverage to Medicare Beneficiaries in 49 States and the District of Columbia




CYPRESS, Calif., Sept. 27  /PRNewswire-FirstCall/ -- PacifiCare Health Systems Inc. (NYSE:PHS) announced that it has received approval from the Centers for Medicare & Medicaid Services (CMS) to offer its new Medicare private fee-for-service health plans in 49 states and the District of Columbia, covering more than 1,500 counties.

PacifiCare introduced its Medicare private fee-for-service plans in July and began enrollment Sept. 1.  Called SecureHorizons(C) Direct(SM), the plans initially launched in more than 800 counties in 16 states.  Beneficiaries who reside in the additional 33 states and the District of Columbia are eligible for coverage effective Jan. 1, 2006.  Members who sign up for SecureHorizons Direct are also eligible to enroll in PacifiCare's new Medicare Part D prescription drug benefit.

Medicare beneficiaries can choose among eight different SecureHorizons Direct medical benefit plan designs -- depending on their county of residence -- with three plans having a $0 monthly plan premium.  All plans provide an annual limit on out-of-pocket costs for members.  In addition, all of the Basic plans include low office visit co-payments, ranging from $5 to $12 for a primary care physician visit and $20 to $25 for a visit to a specialist.  The Premier plans offer first-dollar coverage on physician and hospital services. Members can receive covered services from any Medicare-eligible provider throughout the United States regardless of where they live.

SecureHorizons Direct members also have access to PacifiCare's Medicare Part D prescription drug plans.  Available nationwide -- in all 34 regions established by CMS -- and marketed under the brand name Prescription Solutions from PacifiCare, SecureHorizons Direct members can choose from three different plans -- PacifiCare Saver Plan, PacifiCare Comprehensive Plan and PacifiCare Select Plan -- with coverage starting Jan. 1, 2006.

PacifiCare's prescription drug plans offer a wide range in savings and choice of benefit options intended to meet individual needs, and each plan has no annual deductible.  The range in monthly premiums reflects the variety of benefits offered and the variation in utilization in each region of the country, with premiums ranging from $19.02 to $34.88 for the Saver Plan, from $33.91 to $54.51 for the Comprehensive Plan, and from $29.64 to $47.61 for the Select Plan.

"Recent consumer surveys have shown us that seniors want more choice and fewer out-of-pocket costs," said Kathy Feeny, executive vice president of Secure Horizons Senior Solutions.  "The SecureHorizons Direct plan enhances our current product portfolio, which includes Medicare supplement and Medicare Advantage plans, and allows us to bring comprehensive medical coverage and preventive health programs at an affordable price to Medicare beneficiaries, particularly to those in rural areas of the country.  Now with the option of enrolling in a Part D plan, seniors who appreciate the flexibility of a private fee-for-service health plan can now realize additional savings and choice in their prescription drug benefit."

In addition to comprehensive medical and prescription-drug benefits, PacifiCare will offer its SecureHorizons Direct members -- for an additional $5 a month -- the opportunity to purchase a PacifiCare dental and vision plan that offers discounts ranging from 20 to 70 percent on exams and procedures. In addition, each Part D prescription drug plan offers broad access to brand-name and generic drugs and a national network of more than 50,000 pharmacies.  SecureHorizons Direct members can realize additional savings by having their prescription drugs delivered to their homes via mail.

Through the Medicare Part D prescription drug benefit, Medicare beneficiaries are guaranteed access to prescription drugs.  Those enrolled in traditional Medicare can sign up for the Part D benefit as a standalone PDP or choose to enroll in a private fee-for-service plan like SecureHorizons Direct and enroll in a complementary Part D prescription drug plan.  The first open-enrollment period for standalone PDPs begins Nov. 15, 2005, and runs through May 15, 2006.

"For the first time in Medicare's 40-year history, seniors will have access to a prescription drug benefit, and we are excited about the opportunity to offer Medicare beneficiaries nationwide the kind of flexible and affordable prescription drug benefits they have been asking for," said Howard Phanstiel, PacifiCare's chairman and chief executive officer.  "We believe that seniors will appreciate Prescription Solutions from PacifiCare's combination of choice, value and flexibility, and we look forward to continually delivering innovative senior health care coverage solutions as we have for more than 20 years."

In 1985, PacifiCare's Secure Horizons Plan became one of the first Medicare health plans to be awarded a Medicare Advantage contract by the federal government.  Twenty years later, Secure Horizons remains one of the nation's largest Medicare Advantage Plans, offering competitive health care coverage and additional benefits to approximately 730,000 members.

Medicare beneficiaries interested in learning more about the new SecureHorizons Direct plan can call 800-592-9777 or visit http://www.securehorizons.com/.

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.  Today PacifiCare is the nation's second-largest senior health insurance company with more than 20 years' experience delivering affordable, quality health care coverage to America's seniors.  PacifiCare's specialty plan operations include behavioral health and dental and vision, as well as complete pharmacy benefit management with more than a decade of experience specializing in the senior prescription-drug market.  More information on PacifiCare Health Systems is available at http://www.pacificare.com/. 

DATASOURCE: PacifiCare Health Systems Inc.



CONTACT:  Cheryl Randolph, [phone], , or

Dan Miller, [phone], , both Media Relations of

PacifiCare Health Systems Inc.



Web site:  http://www.pacificare.com/

Web site:  http://www.securehorizons.com/

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