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CareFirst, Healthways Announce Extension of Contract for Disease Management Services through 2015

Long-Term Contract Covers Approx. 1.2 Million Federal Employees Program and Self-Insured Employer Members of CareFirst

Baltimore, MD & Nashville, TN (October 17, 2012) - Healthways (NASDAQ: HWAY) and CareFirst BlueCross BlueShield (CareFirst) today announced an extension of disease management solutions through 2015 representing a population of approximately 1.2 million in the Maryland and greater DC region. The contract provides access to services for a number of chronic conditions to nearly 600,000 members that CareFirst serves within the Federal Employees Program (FEP) as an administrator for the federal government and chronic condition services to about 90 ASO self-insured employer customers of CareFirst representing about 600,000 employees and beneficiaries of those employees. The contract extensions allow CareFirst and Healthways to continue to expand services to additional employer customers of CareFirst in the future.

“With the inherent pressure to slow the rise in health care costs, it has never been more important to have programs in place that seek to improve the health of our members. Our relationship with Healthways continues to facilitate the promotion of better care,” said Chet Burrell, President and CEO of CareFirst. “We look forward to exploring continued opportunities to partner with Healthways in serving our customers through innovative practices that are demonstrably effective.”

“For many years, CareFirst and Healthways have enjoyed a successful partnership, and we are pleased to continue working together to promote a population-wide approach for effectively managing the health of their self-insured and FEP members,” said Healthways President and CEO Ben R. Leedle, Jr. “Healthways disease management programs are designed to drive behavior change leading to improved member health status via multiple modalities of interventions, including provider support, telephonic intervention and mail education. These interventions have consistently produced both short- and long-term outcomes improvement for participants, and we applaud CareFirst for their long-term commitment to this highly effective program.”

About CareFirst
In its 75th year of service, CareFirst, an independent licensee of the Blue Cross and Blue Shield Association, is a not-for-profit health care company which, through its affiliates and subsidiaries, offers a comprehensive portfolio of health insurance products and administrative services to 3.4 million individuals and groups in Maryland, the District of Columbia and Northern Virginia. In 2011, CareFirst contributed $51 million to community programs designed to increase the accessibility, affordability, safety and quality of health care throughout its market areas. To learn more about CareFirst BlueCross BlueShield, visit our web site at www.carefirst.com or follow us on Twitter: http://twitter.com/CareFirst_News.

About Healthways
Healthways (NASDAQ: HWAY) is the largest independent global provider of well-being improvement solutions. Dedicated to creating a healthier world one person at a time, the Company uses the science of behavior change to produce and measure positive change in well-being for our customers, which include employers, integrated health systems, hospitals, physicians, health plans, communities and government entities. We provide highly specific and personalized support for each individual and their team of experts to optimize each participant’s health and productivity and to reduce health-related costs. Results are achieved by addressing longitudinal health risks and care needs of everyone in a given population. The Company has scaled its proprietary technology infrastructure and delivery capabilities developed over 30 years and now serves approximately 40 million people on four continents. Learn more at www.healthways.com or www.silversneakers.com.

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