On Monday, September 15, 2008 Capital Blue Cross announced the resignation of Anita Smith, President and CEO, since July 2004.

As a full-service health insurer, Capital Blue Cross offers both hospital and physician services to its nearly 1 million members in a 21-county area, making the company one of the largest health insurers in the region.

The Board has initiated a national search for the company's next CEO. In the interim, the chief executive functions of the company will be executed by Mr. William Lehr, Jr. Mr. Lehr has been Chairman of the Board since July 2004. Appointed by the Board to assist Mr. Lehr in his executive duties are:

• Board Vice Chair James M. Mead, who was President and CEO of Capital Blue Cross for 20 years
• Board Member Ronald J. Drnevich, who was Chairman and CEO of Gannett Fleming, Inc.

Headquartered in Harrisburg, Capital Blue Cross is the market-leading health insurer in Central Pennsylvania and the Lehigh Valley, providing health insurance to nearly one million people. The company has been serving its customers for more than 70 years and employs more than 2,300 people. Capital Blue Cross is an independent licensee of the Blue Cross and Blue Shield Association.

HOW DOES THIS AFFECT YOU AS AN EMPLOYER?
The change in management does not change your current employee benefit plan. The executive team that sits on the board will have active duties until a new CEO is hired and has the experience and background to continue to drive growth for Capital Blue Cross.

WHAT SHOULD I DO NEXT?
If you have questions regarding this eCommunication, please contact Corporate Synergies at 1.866.CSG.1719 or click here to contact us today.