Bluegrass Family Health, Inc. Tennessee Fully Insured Business

Nashville, TN, July 01, 2010 --(PR.com)-- Effective January 1, 2011, Bluegrass Family Health, Inc. will no longer issue or renew any fully insured group health insurance coverage in the state of Tennessee. All Bluegrass Family Health, Inc. fully insured health benefit plans in effect on December 31, 2010 will terminate as of that date. Sadly, in 2009 Bluegrass Family Health, Inc.'s ability to compete in the fully insured small and large group health insurance markets was crippled by the passage of Senate Bill 2357, which requires all Health Maintenance Organizations doing business in the state of Tennessee to pay a 5.5% tax on the gross amount of all dollars collected from or on behalf of an enrollee. Undue pressure placed upon Bluegrass Family Health, Inc. by the increase of premium tax from 2% to 5.5% made competition with non Health Maintenance Organizations in Tennessee impossible.

Bluegrass Family Health, Inc. will continue to provide access to the Bluegrass Family Health, Inc. network through network lease arrangements, and support self funded lines of business. Bluegrass Family Health, Inc. will continue to provide network lease arrangements through Signature Health Alliance and Bluegrass Single Source networks based in the Nashville, TN office.

About Bluegrass Family Health
Bluegrass Family Health is a Kentucky-based, not-for-profit company offering group health Insurance to businesses in Kentucky and Southern Indiana. Based in Lexington, KY Bluegrass Family Health offers insurance products for fully-insured and self-funded employers. At the forefront of the Consumer Directed Healthcare movement, Bluegrass Family Health offers HRA and HSA compatible plans, as well as traditional HMO and PPO plan designs.

For more information about Bluegrass Family Health, call 1-800-787-2680 or visit www.bgfh.com.

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