WC Wellchoice

WellChoice, Inc. (NYSE: WC) announced today that its primary operating subsidiary, Empire Blue Cross Blue Shield, was selected to enter into negotiations regarding the Prescription Drug Contract for the New York State Account for a three-year period commencing January 1, 2006. This account, which is known as The Empire Plan, is the health insurance plan for employees of New York State and other public authorities, public benefit corporations, and participating government employers. The Company currently provides hospital-only coverage for The Empire Plan and as of June 30, 2005, the New York State account covered approximately 998,000 members. The Company will collaborate with Caremark Rx, Inc., in administering the program. Services to be provided under the prescription drug contract will include account management, pharmacy member services, retail pharmacy network contracting and management, mail pharmacy services, formulary management and compliance, utilization management and pharmacy clinical policies and programs, claims processing and payment of claims to participating pharmacies. The Company expects to receive between $1.3 and $1.5 billion in revenues in the first year of the contract, a portion of which will be paid to Caremark for the services they provide. "Having represented the State account for over 50 years, we are pleased to have been selected by the State as its vendor of choice to expand on the services we currently provide," said Michael A. Stocker, M.D., president and CEO of WellChoice. "We believe that this combination of two industry leaders - WellChoice and Caremark - will help ensure the expertise and knowledge needed to effectively manage this program." The final award is contingent upon the successful contract negotiations between the NYS Department of Civil Service and the Company as well as approval by the Office of the NYS Comptroller. About WellChoice, Inc. WellChoice, Inc. is the parent company of the largest health insurer in the State of New York, based on PPO and HMO membership. WellChoice, through its Empire Blue Cross Blue Shield subsidiaries, has the exclusive right to use the Blue Cross and Blue Shield names and marks in 10 downstate New York counties and one or both of these names and marks in selected counties in upstate New York. WellChoice offers a broad portfolio of products, including managed care and traditional indemnity products, and has a broad customer base including large group, middle-market and small group, individual, and national accounts. Additional information on WellChoice can be found at www.wellchoice.com. About Caremark Rx Caremark Rx, Inc. is a leading pharmaceutical services company, providing through its affiliates comprehensive drug benefit services to over 2,000 health plan sponsors and their plan participants throughout the U.S. Caremark's clients include corporate health plans, managed care organizations, insurance companies, unions, government agencies and other funded benefit plans. The Company operates a national retail pharmacy network with over 60,000 participating pharmacies, seven mail service pharmacies, the industry's only FDA-regulated repackaging plant and 21 licensed specialty pharmacies for delivery of advanced medications to individuals with chronic or genetic diseases and disorders. Additional information about Caremark Rx is available on the World Wide Web at www.caremarkrx.com. Cautionary Statement Some of the information contained in this press release is forward-looking, including statements relating to future financial or business results. Forward-looking information is based on management's estimates, assumptions and projections and is subject to significant uncertainties and other factors, many of which are beyond the company's control. Important risk factors could cause future results to differ materially from those estimated by management. Those risks and uncertainties include but are not limited to: execution of the definitive agreement for the New York State Account Prescription Drug Program, our ability to accurately predict health care costs and to manage those costs through underwriting criteria, quality initiatives and medical management; product design and negotiation of favorable provider reimbursement rates; our ability to maintain or increase our premium rates; possible reductions in enrollment in our products or changes in membership including the loss of either the New York City or the New York State account; the regional concentration of our business in the New York metropolitan area and the effects of economic downturns in that region or generally; future bio-terrorist activity or other potential public health epidemics; the impact of health care reform and other regulatory matters; and the outcome of litigation. For a more detailed discussion of these and other important factors that may materially affect WellChoice, please see WellChoice's filings with the Securities and Exchange Commission, including the discussion of risk factors and historical results of operations and financial condition in its Annual Report on Form 10-K for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q for the three months ended March 31, 2005 and for the three months ended June 30, 2005.