Health Plan of Michigan Selects RxAmerica to Provide Pharmacy Benefit Management Services

PR Newswire - February 3, 2004 - SALT LAKE CITY, UTAH - Health Plan of Michigan announced that it has chosen RxAmerica to manage its prescription benefit services. With more than 74,000 beneficiaries in 30 counties, Health Plan of Michigan is one of the largest Medicaid HMO's in the state. Teaming up with RxAmerica ensures that Health Plan of Michigan will be able to control prescription drug costs going forward, without compromising the high level of service it provides to covered members.

"RxAmerica is thrilled to be partnering with Health Plan of Michigan to provide pharmacy benefit services for its members," said John Gardynik, RxAmerica's President. "Our experience and record of success with similar plans will enable us to compliment Health Plan of Michigan's excellent service, while keeping total prescription costs well below industry averages."

RxAmerica's selection was based on its ability to provide several key services, such as innovative clinical programs, proactive member and provider education initiatives, and a state-of-the-art decision support reporting tool. The decision to partner with RxAmerica was based not only on the company's record of success in the Medicaid market, but also on its ability to meet the unique needs and service requirements of Health Plan of Michigan's members.

"RxAmerica's ability to guarantee savings and their track record of exceptional customer service makes for an ideal partnership with Health Plan of Michigan," said David B. Cotton MD, President and CEO. "Our goal has always been to provide our members with superior service and the highest quality of care. It's clear that RxAmerica has the same priorities."

About RxAmerica - RxAmerica is a leading Pharmacy Benefits Manager that specializes in controlling costs, creating customized solutions and delivering best-in-class service for its clients. RxAmerica has partnered with many large and successful managed care providers to create a new trend in the industry - lowering prescription costs in a consistently inflationary environment. With its powerful online reporting tool, RxInsider, RxAmerica delivers innovative and targeted programs that improve the health of members while lowering costs for health plans.

Nationally, RxAmerica provides prescription benefits for more than five million individuals through a retail network of more than 53,000 pharmacies and a state-of-the-art mail order facility. RxAmerica is a wholly owned subsidiary of Longs Drug Stores Corporation (NYSE - symbol LDG), one of the leading drug store chains in North America. Information on Longs Drugs is available at www.longs.com.

For further information on RxAmerica, call 1-800-770-8014 or visit RxAmerica's web site at www.rxamerica.com.

About Health Plan of Michigan - Health Plan of Michigan, Inc. is a State Medicaid HMO that contracts with the Michigan Department of Community Health (MDCH) to provide comprehensive health care to its beneficiaries. Health Plan of Michigan initially resulted from the merger of two clinic plans, Central Michigan Health Plan (CMHP) and American Preferred Provider Plan of Michigan, Inc. (APPPM). Health Plan of Michigan now covers over 74,000 beneficiaries in 30 counties and has operated as a full service HMO since January of 2000. Health Plan of Michigan became NCQA accredited in May of 2002 and remains a physician owned and physician managed health plan.

For more information on Health Plan of Michigan, visit www.hpmich.com.