State Audit of Blue Cross Blue Shield of Michigan Shows Company in Compliance with...

State Audit of Blue Cross Blue Shield of Michigan Shows Company in Compliance
with State and National Accounting Guidelines

223 Audits of BCBSM Have Been Conducted Since 2006

DETROIT, May 18 /PRNewswire/ -- A just-completed financial audit of Blue Cross
Blue Shield of Michigan by the Michigan Office of Financial and Insurance
Regulation found no material defects in the Blues financial statements over
the audit's four-year period. The state audit was scheduled and routine.

OFIR routinely audits the Blues in a cycle in accordance with guidelines and
procedures recommended by the National Association of Insurance Commissioners
and the laws, rules and regulations prescribed by OFIR. The onsite field work
for the audit lasted over a period of six months, during which state auditors
and external actuaries reviewed balance sheets, revenues and expenses, capital
and reserves, and cash flows.

The audit showed no need for material changes in the Blues' financial records,
indicating that the company's independently audited financial statements
accurately represent the company's financial performance across its lines of
business.

"We are encouraged by the state's acknowledgement that our financial
statements are in order," said Michele Samuels, BCBSM vice president, general
auditor and corporate compliance. "Blue Cross is one of Michigan's most
regulated and audited companies, and we are proud that these audits reflect
the internal controls we put into running our business with transparency and
integrity."

The audit was conducted by the Michigan Office of Financial and Insurance
Regulation and covered the period from Jan. 1, 2004, to Dec. 31, 2007.

The Blue Cross and Blue Shield Association audits the company, as do Blues'
group customers and entities of the federal government. Approximately 223
audits were performed by various Blues customers from 2006 through 2008. The
company has its controls routinely audited by its Internal Audit Division. Its
internal Audit Division has been honored twice with quality awards from the
Institute of Internal Auditors, a worldwide organization.

Blue Cross Blue Shield of Michigan is a nonprofit corporation and an
independent licensee of the Blue Cross and Blue Shield Association.

SOURCE Blue Cross Blue Shield of Michigan

Helen Stojic of Blue Cross Blue Shield Michigan, +1-313-549-9884,
newsroom@bcbsm.com