MOUNTLAKE TERRACE, WA – (April 30, 2004) MultiCare Health System, Tacoma, and Premera Blue Cross announced today that they have reached agreement on multi-year contracts for Mary Bridge Children’s Hospital and Health Center, Tacoma General and Allenmore Hospitals and their network of more than 200 employed physicians, including MultiCare Medical Group.

The agreement means Premera members who obtain care at MultiCare facilities will be able to continue to receive medical coverage without disruption of their health care benefits.

“Our primary goal was to ensure that our members who receive care at MultiCare facilities could continue to do so,” said Rich Maturi, Premera Senior Vice President for Health Care Delivery Systems.

“We value our patients and we will continue to provide them with the quality health care that they have come to expect,” said Diane Cecchettini, RN, President and CEO of MultiCare. “We feel it was in our patients’ best interest to resolve this issue so that they can continue accessing our services now and into the future. We are also sensitive to any potential disruptions caused by changes in health insurance coverage.”

Both MultiCare and Premera made significant concessions to reach agreement and look forward to continuing to work together in the future to provide Premera members with access to MultiCare hospitals and physicians.

This new contract will continue to include members in Participating, Preferred, MSC, LifeWise products, and the Premera Dimensions™ Heritage and Global networks. Effective June 1, members in the Premera Dimensions™ Foundation and Access networks will also be able to receive care at MultiCare facilities according to their plan benefits.

The termination was to have taken place on June 1, 2004. Premera and MultiCare agreed two weeks ago to return to the table to resume negotiations.