SISC III announced on November 1, 2011

TO: Superintendent and Key Contact of Select SISC III Member Districts

FROM: John Stenerson, Deputy Executive Officer

SUBJECT: Stanford University Hospital & Anthem Blue Cross Agreement

As you may be aware; Stanford University Hospital, Lucile Salter Packard Children’s Hospital and their physicians (collectively "Stanford Hospitals") terminated their commercial hospital and professional agreements with Anthem Blue Cross, effective September 1, 2011. Since that time, both parties have been engaged in active negotiations. Lucile Salter Packard Children’s Hospital rejoined Anthem’s network on October 28, 2011 with a September 1, 2011 effective date.

Anthem is pleased to announce they have reached a multi-year agreement with Stanford University Hospital and their physicians for an effective date of September 1, 2011. Therefore there is no lapse in member coverage at Stanford Hospitals.

Please direct employees with questions to the customer service number on their medical ID card.