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TriZetto CEO Jeff Margolis Reinforces Payers' Central Role at Goldman Sachs Consumer-directed Healthcare Conference

NEWPORT BEACH, Calif. – October 2, 2006 – At a thought leadership conference held last Thursday to examine the competitive implications of consumer-directed healthcare, Jeff Margolis, chairman and CEO of the TriZetto Group, Inc. (NASDAQ: TZIX) emphasized the central role that healthcare payers will play in driving new consumer-retail processes across the entire $2 trillion healthcare industry. More than 100 healthcare executives attended the one-day conference co-sponsored by Goldman Sachs and Diamond Management & Technology consultants. Margolis spoke on a panel that addressed the topic of integrating financial services and medical claims processing.

Margolis opened his remarks, saying, "Today, private healthcare payers provide the systematic structure that links over 200 million consumers to physicians and physician groups, hospitals and other types of facilities, pharmacy benefits, and medical suppliers. All of this is accomplished within a maddeningly complex economic framework bounded by such institutional pillars known as benefit plans, provider contracts, medical management rules, and more recently, what we call at TriZetto, fund source management."

Margolis pointed out that while much of the recent industry focus has been on funding instruments such as health savings accounts, financial institutions and consumer impact, the payers and providers will bear an enormous impact from the increasing financial responsibility being placed on consumers. "Patient liability at the point of service is going to be a critical capability in the convergence or partnership of financial institutions and health plans, as well as relationships among health plans and providers" he noted.

Margolis challenged common notions about whether the healthcare system must continue to be so complex and why the results of so many well-capitalized new market entrants over the years have fallen short of expectations. He suggested that not only will the underlying complexity continue, but it will increase in the emerging world of consumer-retail healthcare. He cited the industry's complexity as the critical stumbling block for many of the new entrants.

Emphasizing this point, Margolis said, "As consumerism matures and qualitative factors such as health status assessments and consumer satisfaction start to impact the payment calculation in a more transparent world, where at least some elements of payment are determined based upon performance, the sophistication and complexity of the rules-based calculations will only increase. Among the industry participants, payers are the most experienced and capable of handling this complexity today, and will continue to be in the future."

Looking ahead, Margolis added, "An important step towards a more transparent consumer retail healthcare system is for payers to help consumers learn or 'unlock' what the payers already know about evaluating physicians, hospitals and care. That will empower consumers."

Highlighting emerging quality information in consumer-retail healthcare, Margolis suggested that the industry needs to reexamine its thinking. "While we have a bunch of clinical research groups running around and defining quality in sophisticated clinical terms, consumers may have some very different ideas about the definitions of quality. For example, something as straightforward as the time spent in the waiting room may ultimately be as important a qualitative factor to consumers as the clinical measurements of procedural outcomes."

In concluding his remarks, Margolis said that there is an increased opportunity for financial institutions to partner with health plans and others in the area of fund management. He called for greater collaboration between all the institutions that provide financial, qualitative and transaction information in the healthcare system.

About TriZetto

Touching more than 35% of the U.S. insured population, TriZetto is distinctly focused on accelerating the ability of healthcare payers to lead the industry's transformation. The company provides premier information technology solutions that enhance its customers' revenue growth, drive their administrative efficiency, and improve the cost and quality of care for their members. Healthcare payers include national and regional health insurance plans, and benefits administrators that provide transaction services to self-insured employer groups. The company's broad array of payer-focused information technology offerings include enterprise and component software, hosting and business process outsourcing services, and consulting. Headquartered in Newport Beach, California, TriZetto can be reached at 949-719-2200 or at www.trizetto.com.

CONTACTS:

Investors:
Brad Samson
949-719-2220
brad.samson@trizetto.com

Media:
Audrey McDill
303-495-7197
audrey.mcdill@trizetto.com


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