NEWPORT BEACH, Calif. – March 25, 2004 – The TriZetto Group, Inc. (Nasdaq:TZIX) announced that PreferredOne, a Golden Valley, Minnesota-based health plan, has transitioned 200,000 members to Facets Extended Enterprise™ (Facets e2™), TriZetto's enterprise-wide administrative system. PreferredOne also implemented TriZetto's consumer-directed application, which processes new employer-funded health reimbursement arrangements (HRAs) and employee-funded flexible spending accounts (FSAs).

Using Facets e2, health plans can increase levels of automation and productivity, while supporting new business requirements, such as administering consumer-directed products, offering highly efficient customer service and deeply integrating Web features with their core system. These capabilities have already helped PreferredOne achieve significant results since the new system went live on February 14.

PreferredOne is among a growing number of health plans offering a consumer-directed product, designed to help address rising costs and give consumers greater control over healthcare decisions. PreferredOne's Consumer AdvantageSM combines a medical plan with health-spending accounts, including HRAs and FSAs.

John Hofflander, senior vice president and chief information officer for PreferredOne, says that offering a consumer-directed product gives his organization a competitive advantage in a tough market. "Consumers and employers are always searching for more affordable and flexible health plan options," explains Hofflander. "With Facets e2 technology, we're able to support these complex new products."

Consumer Advantage is PreferredOne's fastest growing health plan product. However, it posed an administrative challenge. With one system housing medical claims data and a second system storing HRA/FSA records, each claim had to be processed at least twice. This labor-intensive and error-prone process threatened to offset the product's inherent cost benefits. However, PreferredOne quickly developed a strategy to improve administration of the product, and in July 2003 it became the first TriZetto customer to purchase Facets e2 and its defined contribution module.

"With Facets e2, health plans can process both traditional claims and new consumer-directed HRA/FSA claims on a single administrative system," said Tony Bellomo, president of TriZetto's Software unit. "This eliminates the costs and risks of integrating disparate systems, resolves all claims through a single adjudication and drives increased efficiency and productivity. From a member satisfaction perspective, health plans can address inquiries via one point of contact, quickly and accurately."

"With all critical data – claims, HRAs , FSAs and more – now in one central data repository, we're able to process Consumer Advantage claims in one step, quickly and accurately," says Hofflander. "In just one month, we've already seen improvements not only in our HRA processing, but in accessing key information when we need it."

The new system also automatically updates information related to HRA/FSA account balances, deductibles and co-pays. For example, schedules and criteria for rolling over unused balances vary tremendously by employer. With Facets e2, the entire process is handled automatically across all employer groups, eliminating hours of work for plan administrators. Plus, now members receive a single explanation of benefits summary that shows the amounts deducted from various accounts.

Facets e2's well-designed interface and intuitive tree-navigation provide users more effective access to information. PreferredOne employees have praised the software's easy-to-use screens and practical features. This powerful back-end system is tightly integrated with the health plan's website, where Consumer Advantage members can review their benefit plans, track family healthcare expenses, check the status of a claim and order new ID cards.

According to Hofflander, another key benefit of Facets e2 is its integrated functionality to address the Health Insurance Portability and Accountability Act (HIPAA), which the government established to protect consumers' health information. The system processes transactions and handles member data in accordance with these privacy and security guidelines, a challenge for many health plans. "TriZetto's advanced technology will help us maintain HIPAA compliance through a single partner," says Hofflander. "With this arrangement, we can optimize our software and focus more on business operations, rather than on managing multiple vendors."

About PreferredOne

About TriZetto

The TriZetto Group, Inc. offers a broad portfolio of healthcare information technology (IT) products and services that can be delivered individually or combined to create a comprehensive solution.

The company provides:

• leading proprietary and third-party software, including e-business applications;
• outsourced services, such as software hosting, transaction processing and IT department operations; and
• strategic and implementation consulting.

TriZetto is focused on three healthcare markets: payers, benefits administrators and physician groups. Its more than 400 customers represent approximately 40 percent of the U.S. insured population. Headquartered in Newport Beach, Calif., TriZetto can be reached at (949) 719-2200 or www.trizetto.com.

CONTACTS:

TriZetto Media Relations
Audrey Mautner
303-495-7197
audrey.mautner@trizetto.com

Schwartz Communications
Brian Bogie
781-684-0770
trizetto@schwartz-pr.com

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