FOR IMMEDIATE RELEASE

Contacts:
Bill Bennett, Mercy Health Plans, 314/214-8123
Cris Cristea, Community CarePlus, 314/432-9300

St. Louis-based Medicaid Insurance Programs Receive State Approval to Merge as "Mercy CarePlus"

ST. LOUIS, MO (June 26, 2006) – Two St. Louis-area health programs serving the Medicaid population, Alliance for Community Health, LLC (d/b/a Community CarePlus) and Mercy Health Plans’ Mercy MC+, have received state approval to merge their Medicaid operations, creating the state’s second largest Medicaid insurance plan. The merged plan will operate as Mercy CarePlus. Combined, Mercy CarePlus will serve a population of approximately 80,000 members in Eastern Missouri, Central Missouri and Western Missouri.

The merger plan was submitted for approval to the Missouri Department of Insurance and the Department of Social Services’ Division of Medical Services on May 16. The plan received approval on June 23 with an effective date of July 1.

Mercy CarePlus’ network of participating healthcare partners will include 41 hospitals, 4,200 physicians and 250 ancillary providers.

While Community CarePlus management will provide leadership for Mercy CarePlus, Mercy Health Plans will continue to play a significant role in ongoing operations through representation at the board level. Mercy CarePlus will be headquartered at Community CarePlus’ current location in Creve Coeur.

“Our purpose in pursuing this merger is to create a single organization that, by virtue of greater size and scope, offers opportunities to strengthen service to Medicaid members as well as leverage organizational efficiencies,” said Michael Murphy, president and CEO of Mercy Health Plans. “We anticipate significant synergies in key areas such as member services, contracting, claims processing and community outreach.”

“Mercy CarePlus, the new combined organization, will benefit from the collective experience and best practices of both our plans, ultimately delivering a better quality service to our members,” added Jerry Linder, president of the new Mercy CarePlus and formerly president of Community CarePlus. “With our resources combined and committed to meeting the needs of the Medicaid community, we will be able to strengthen our ability to address their specific concerns.”

Mercy CarePlus is committed to carrying on the mission of the two organizations, said Linder.

“We will continue to focus on positively impacting the lives of those who rely on Medicaid in Missouri by displaying the highest level of care and making Medicaid as easy to use as possible,” he said.

Mercy CarePlus will serve not only Eastern Missouri but also Central and Western Missouri. Community CarePlus and Mercy MC+ formerly served Eastern Missouri only; however, state regulatory agencies have approved Mercy CarePlus’ expansion into the two other Medicaid-designated markets in the state.

For more information, visit mercycareplus.com.

About Community CarePlus
The Alliance for Community Health d/b/a Community CarePlus is a limited liability company created in 1995 with the exclusive focus of serving Medicaid-eligible Missourians. Community CarePlus, headquartered in Creve Coeur, Missouri, serves approximately 38,000 Medicaid recipients in St. Louis City and 9 surrounding counties. Community CarePlus’ network of participating healthcare partners includes 19 hospitals, 3,500 physicians and 110 ancillary providers.

About Mercy MC+
Mercy MC+ is part of Mercy Health Plans, a full-service Health Management Company providing a full range of HMO, PPO and POS benefit plans as well as Medicare, Medicaid and individual health insurance. Headquartered in Chesterfield, Missouri, Mercy Health Plans currently has operations in St. Louis, Springfield and mid-Missouri, as well as Laredo, Texas, and the state of Arkansas. Mercy Health Plans is sponsored by the Sisters of Mercy Health System. For more information, visit www.mercyhealthplans.com.

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