DST Output’s VeraPro^SM Solution Provides Significant Production Cost Savings for Blue Shield of California

Printing Services for Member Communications are Significantly Improved

EL DORADO HILLS, CA, MAY 2, 2005 — DST Output, the nation’s leading third-party First-Class mailer, has consolidated some of Blue Shield of California’s in-house printing capabilities and migrated them onto its VeraPro SM healthcare solution. This solution has been instrumental in reducing the healthcare coverage leader’s overall fulfillment production and distribution costs. VeraPro is an integrated solution for healthcare communications that streamlines the creation, distribution and viewing of critical customer communications for health plans.

“Blue Shield of California’s decision to consolidate certain printing, mailing and fulfillment production processes with DST Output has resulted in cost savings in production and postage, while providing a more efficient communication process, ” said Bob Wadsworth, vice president of installation and membership in Blue Shield’s Consumer Operations Division. “This capability helps us get material to our customers in a more cost effective and timely manner, allowing Blue Shield to better meet customer expectations.”

Through its VeraPro solution, DST Output currently prints and mails more than two million statements and other Blue Shield of California member communications per month from its operation center in El Dorado Hills, Calif. The full range of DST Output services provides Blue Shield members with ID cards, explanations of benefits (EOBs), claim checks, statements and payments.

DST Output’s VeraPro SM Solution for Health Plans

DST Output’s VeraPro is a proven solution of pre-integrated print and electronic components that streamlines critical customer communications for health plans. VeraPro improves regulatory compliancy, time to market for new products, customer satisfaction, and reduces operational risk, complexity and cost. VeraPro’s comprehensive menu of services allows health plans to select from multiple sourcing options, depending on the plan’s specific business requirements and preferences.“DST Output raised the bar by launching the first common-architecture, integrated solution for leading healthcare companies,” says Charles Page, healthcare practice leader for DST Output. “This market demands more than traditional print and mail processing, and that’s where our integrated solution strategy aligns with the needs of today’s healthcare plans.”

About DST Output
DST Output, a wholly owned subsidiary of DST Systems, Inc., provides integrated print and electronic communications for the banking, br okerage, communications, healthcare, insurance, and mutual fund industries. As the largest third-party First Class mailer in the United States, DST Output produces more than 1.9 billion customer communications a year from its state-of-the-art facilities in North America. IndustryWeek magazine included the El Dorado Hills operation center in its list of “Top Ten Best Plants in North America” in 2002. In November, the same facility received certification for Mail Preparation Total Quality Management (MPTQM) from the U.S. Postal Service (USPS) and is designated as a distinguished Quality Mailing Partner of the USPS.

For more information visit www.dstoutput.com and www.dstoutput.com/industries/healthcare/index.html.