HealthMarkets Enters Medicare Market with HealthMarkets Care Assured Plans

HealthMarkets Enters Medicare Market with HealthMarkets Care Assured Plans

North Richland Hills, Texas – September 19, 2007 – HealthMarkets, Inc. (http://www.healthmarkets.com) announced today that it has been approved by the Centers for Medicare and Medicaid Services (CMS) to introduce new Medicare Advantage and Part D products later this year for a January 1, 2008 start date.

"We are excited about expanding into the Medicare market with our HealthMarkets Care Assured plans," said HealthMarkets President and Chief Executive Officer William J. Gedwed. "The plans fit the needs of the marketplace and they build on our expertise in serving individuals and families for more than 20 years."

Gedwed appointed Nancy G. Cocozza as president of the Company's newly formed Medicare Group and as a HealthMarkets executive vice president. Prior to joining HealthMarkets, Cocozza served as senior vice president of Coventry Health Care where she led the company's government programs from 2001 to 2006. Cocozza previously served in a variety of executive roles at Aetna, Inc. and its predecessor, U.S. HealthCare.

"We are pleased to welcome Nancy to the HealthMarkets team," Gedwed said. "Nancy's extensive background in Medicare programs gives her the perfect blend of knowledge and skills to launch these new health plans and help us become a leader in the Medicare market."

HealthMarkets Care Assured plans (http://www.HMCareAssured.com) are the Company's first entry into the Medicare market and will be underwritten by The Chesapeake Life Insurance Company, a HealthMarkets company.

"A Medicare Advantage plan must deliver real value along with an effective method for reaching those who are eligible," Cocozza said. "Our carefully designed plans, combined with a sales force that understands the one-on-one, personalized nature of the individual health insurance market, will deliver outstanding service to Medicare beneficiaries."

Based on extensive field testing of Medicare beneficiary needs, HealthMarkets Care Assured plans will offer affordable premiums, predictable co-payments, and some important value-added services that include dental, vision and hearing discounts as well as help in the Part D prescription drug coverage gap.

HealthMarkets Care Assured will commence marketing activities on October 1, 2007, for January 1, 2008 effective coverage in selected markets in 29 states.

HealthMarkets is a leading provider of affordable health and life insurance to the self-employed, individuals and small businesses through its subsidiaries, The MEGA Life and Health Insurance Company, Mid-West National Life Insurance Company of Tennessee and The Chesapeake Life Insurance Company.