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HealthMarkets Responds

Date: September 5, 2007
HealthMarkets Responds
Our Commitment to Our Customers

Recently, USA Today published information about HealthMarkets and its subsidiaries, The MEGA Life and Health Insurance Company and Mid-West National Life Insurance Company of Tennessee. The report included allegations by some that HealthMarkets companies sell insurance policies without fully explaining what the policies do and do not cover.

Here are the facts. Our company has taken strong steps to make sure customers fully understand the products they buy from our underwriting companies. I invite any customers with questions about MEGA or Mid-West policies or benefits to call our dedicated customer service line at (866) 789-9278.

We demonstrate our commitment every day. For example:

• We annually train and test all our agents to make sure they understand our products and explain them properly. In Massachusetts, our agent training program has been accredited as qualifying for the Continuing Education credits required of all insurance agents.
• When our customers purchase a health insurance policy, we contact them to make sure selected benefit options and payment plans are fully understood. Since 2005, we have completed more than 160,000 calls nationwide for this purpose. I know of no other company that takes the time to contact customers after the sale is complete to explain their selected policy benefits, answer questions, and allow the opportunity to change coverage. We take this step because we believe in our products and our customers.
• Since 2003, our Company has put in place important changes to enhance compliance, customer service, and customer understanding of policy benefits and obligations. From 2003 through 2006, complaints regarding health insurance policies by HealthMarkets companies dropped by more than 50 percent.
• For the past two years, HealthMarkets has been working closely with state insurance departments on a consolidated multi-state examination of HealthMarkets and its underwriting companies. We view the examination as an opportunity to improve our Company and to do a better job of providing value and service to our customers.

Because of the high cost of comprehensive insurance, many people face the difficult choice between limited coverage and no coverage at all. We are committed to offering a variety of plans that provide the best insurance value available anywhere for individuals, the self-employed and small businesses.

This is the market we have served for more than 20 years. We are proud of the job we do: providing affordable insurance to nearly one million customers nationwide.

Sincerely,

William J. Gedwed
President and Chief Executive Officer
HealthMarkets, Inc.