Health Care Service Corporation's Anti-Fraud Efforts Showcase Insurers' Role in Protecting...

Health Care Service Corporation's Anti-Fraud Efforts Showcase Insurers' Role
in Protecting Employers' and Health Plan Members' Health Care Spending

Amount of fraud in the system serves as cautionary note for proposed $1
trillion tied to reform

CHICAGO, June 30 /PRNewswire/ -- Eliminating fraud in the health care system
has emerged as a key common component of the various health care reform
proposals being debated in Washington, especially as concerns grow about
finding enough funding to pay for reform and ensuring that billions of dollars
in new spending aren't lost to fraudulent activity.

The unparalleled ability to successfully combat fraud is one of the vital
contributions to the health care system that the private health insurance
sector makes, and among the most successful in fighting fraud has been Health
Care Service Corporation (HCSC), the country's fourth largest health insurer
and operator of the Blue Cross and Blue Shield plans in Illinois, New Mexico,
Oklahoma and Texas.

Recently, HCSC's Special Investigations Department uncovered a scheme
involving fraudulent Medicare and private health insurance claims totaling
$800,000, a case that resulted in $2.5 million in fines and restitution. The
case involved an Illinois allergist whose office was billing for non-rendered
services, unbundling services and balance billing members whom the office
threatened to turn over to collection agencies if the members didn't pay.

In addition to providing millions of dollars in savings for its customers,
HCSC's investigation protocol has been recognized by the Blue Cross and Blue
Shield Association as an industry model of how a health plan and law
enforcement authorities can work together to identify and end fraudulent
claims activity.

About Health Care Service Corporation
Health Care Service Corporation is the country's largest customer-owned health
insurer and fourth largest health insurer overall, with 12.4 million members
in its Blue Cross and Blue Shield plans in Illinois, New Mexico, Oklahoma and
Texas. A Mutual Legal Reserve Company, HCSC is an independent licensee of the
Blue Cross and Blue Shield Association. HCSC has a rating of AA- (Very Strong)
from Standard and Poor's, Aa3 (Excellent) from Moody's and A+ (Superior) from
A.M. Best Company. For more information, visit www.HCSC.com.

SOURCE Health Care Service Corporation

Mark Lane of HCSC, +1-972-766-1738, Mark_Lane@HCSC.net