HealthMarkets Introduces CoverFirst and ProtectionPlus Health Insurance Plans

HealthMarkets, Inc. subsidiary offers health insurance plans to individuals, families and the self-employed

North Richland Hills, Texas – March 12, 2009 – HealthMarkets, Inc. (http://www.healthmarkets.com) announced that it is now offering the CoverFirst: A Scheduled Benefit Plansm and the ProtectionPlus PPO Plansm to consumers.

HealthMarkets® is the brand name for health insurance plans underwritten and issued by the health insurance subsidiaries of HealthMarkets, Inc., located in North Richland Hills, TX. Health insurance plans provided under the HealthMarkets brand are designed to provide personalized health insurance protection to individuals, families and the self-employed.

"Due to the continuing erosion of health insurance benefits provided by employers, more individuals must purchase health insurance on their own and they need options now more than ever," said Phillip J. Hildebrand, HealthMarkets President and Chief Executive Officer.

"Comprehensive, major medical insurance, like the plans typically provided by employers, is one option in the marketplace, but for an individual who must pay 100% of the premium, often it is too expensive to afford. Other options include the health insurance plans we provide. HealthMarkets plans satisfy the need for a product that balances cost with the available benefit options," said Hildebrand.

CoverFirst scheduled benefit plans are designed for individuals and families who:

  • Are looking for basic health insurance coverage for minor illness and injury
  • Want modest deductible options of $5000 or less

ProtectionPlus PPO plans are designed for individuals and families who:

  • Are looking for more traditional health insurance coverage with a defined, coinsurance maximum
  • Can accept moderate deductibles and co-insurance responsibility
  • Want deductible options of $10,000 or less

Mid-West National Life Insurance Company of Tennessee, a subsidiary of HealthMarkets, Inc., underwrites both products. Association membership may be required in some states in order to apply for coverage. CoverFirst and ProtectionPlus are available now in AL, AZ, CO, DC, FL, GA, IA, IL, LA, MI, M0, NC, NM, OH, OK, PA, SC, TN, TX, VA, and WI. CoverFirst is also available in MD and WY.

About HealthMarkets

HealthMarkets® is the brand name for products underwritten and issued by the insurance subsidiaries of HealthMarkets, Inc. -- The Chesapeake Life Insurance Company®, Mid-West National Life Insurance Company of Tennesseesm and The MEGA Life and Health Insurance Companysm. Products provided under the HealthMarkets brand are designed to provide personalized protection to individuals, families, and the self-employed. For further information regarding products offered by the HealthMarkets' Companies, visit www.healthmarkets.com. The administrative offices of HealthMarkets, Inc. and its underwriting companies are located in North Richland Hills, Texas. Products are marketed through independent agents in sales offices across the country. For more information about the HealthMarkets Companies visit www.healthmarkets.com.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Some of the matters discussed in this news release may contain forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate," "believe," "estimate," "expect," "intend," "objective," "plan," "possible," "potential" and similar expressions. Actual results may vary materially from those included in the forward-looking statements. Factors that could cause actual results to differ materially from those included in the forward-looking statements include, but are not limited to, general economic conditions; the continued ability of the Company to compete for customers and insureds in an industry where many of its competitors may have greater market share and/or greater financial resources; the Company's ability to accurately estimate medical claims and control costs; changes in government regulation that could increase the costs of compliance or cause the Company to discontinue marketing its products in certain states; the Company's failure to comply with new or existing government regulations that could subject it to significant fines and penalties and/or result in restrictions on its operations; changes in the relationship between the Company and the membership associations that make available to their members the health insurance and other insurance products issued by the Company's insurance subsidiaries; changes in the laws and regulations governing so-called "association group" insurance (particularly changes that would subject the issuance of policies to prior premium rate approval and/or require the issuance of policies on a "guaranteed issue" basis); significant liabilities and costs associated with litigation; failure of the Company's information systems to provide timely and accurate information; negative publicity regarding the Company's business practices and/or regarding the health insurance industry in general; the Company's inability to enter into or maintain satisfactory relationships with networks of hospitals, physicians, dentists, pharmacies and other health care providers; failure of the Company's regulated insurance company subsidiaries to maintain their current ratings by A.M. Best Company, Fitch and/or Standard & Poor's; and the other risk factors set forth in the reports filed by the Company from time to time with the Securities and Exchange Commission.