Bluegrass Family Health, a subsidiary of Baptist Healthcare System, is a not-for-profit managed care corporation. We received our Certificate of Authority to operate as a Health Maintenance Organization (HMO) in Kentucky in December 1993. Bluegrass Family Health is now a regional health insurance carrier with our launch into Indiana in 2006, and move into Tennessee in 2007. Bluegrass Family Health operates as an IPA model HMO that arranges for health services for its enrollees by contracting with physicians, hospitals, and other providers of health services.

We offer both fully insured and self-funded services to commercial employer groups. In addition to a broad range of HMO and PPO plan designs with a variety of copayment and coinsurance options, we also offer plan designs that meet the legislative requirements for establishing Health Savings Accounts (HSA) and Health Reimbursement Accounts (HRA).

Employers and their employees are especially concerned about the rising costs of health care. In answer to these concerns, we developed Bluegrass Consumer Choice, a consumer directed approach. These plan designs give consumers a say in managing their healthcare costs - both up front with pretax premium dollars and later at the point of care. The consumer choice approach couples a funding arrangement (HSA or HRA) with a traditional HMO or PPO design. We believe these new products, coupled with consumer education, will allow consumers to make more educated choices in their healthcare and thereby reduce overall costs. The Bluegrass Consumer Choice program has proven to be an innovative, appealing, and popular choice among our employer groups.

We are attuned and responsive to our customers. Market research, focus groups, telephone surveys and in-person interviews shape the Bluegrass Family Health philosophy. Our goal is to provide access to high quality medical services that will enhance the health of our members. We utilize our strengths to reach our goal.

• We believe our employees are our greatest strength
• We offer personal services because our business operations are local
• We are not-for-profit which means our profits are reinvested into the company
• We provide information and technology for the benefit of our customers
• We offer a comprehensive provider network

We believe our strengths do not just lie within our company, but also with our external "family" of business partners. This family includes our healthcare providers and brokers.

Our provider network is made up of hospitals, clinics, pharmacies and doctors. The retention rate among our contracted providers is something we are especially proud of; it is one more way to affirm that we treat those who work alongside us as extended family.

While we operate with a direct sales force, we also work closely with a network of licensed brokers. We believe in educating our brokers so they can help us meet the needs of our employer groups and members.

For Bluegrass Family Health, all of our products and programs, all of our efforts to earn the trust of our members and the respect of our providers, fulfills our mission. At Bluegrass Family Health, enhancing the health of our members and communities is the foundation of our service and the cornerstone of our success.