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UICI (ticker: UCI, exchange: New York Stock Exchange (.N)) News Release - 1-Nov-2005

NORTH RICHLAND HILLS, Texas, Nov 01, 2005 /PRNewswire via COMTEX News Network/ -- Health care choices are among the most important and difficult decisions consumers make, but most people have yet to discover the power of Internet tools to evaluate doctors and hospitals, according to a recent survey sponsored by UICI (NYSE: UCI), a leader in Consumer-Driven Health Plans.

In fact, consumers remain far more likely to use the Internet to research a car or computer than a doctor or hospital, the survey found. In addition, people who search the Internet for information to help them buy cars or computers typically spend at least twice as much time doing so as those looking online for information about doctors.

"We believe consumers should have at least as much information about health care as they do about cars or computers," UICI CEO Bill Gedwed said.

"Our Consumer-Driven health insurance plans give consumers access to user- friendly Web sites with the information they need," he said. "Patients should know -- before going to the doctor -- how much a procedure by a particular doctor is likely to cost, or how a hospital ranks on quality indicators."

UICI, through its wholly owned subsidiaries, offers innovative plans that were among the first plans in America to create healthcare consumerism. But as Consumer-Directed plans become increasingly popular, a new UICI white paper lays out clear standards for distinguishing true Consumer-Driven plans from those that are consumer driven in name only.

As the white paper lays out, real Consumer-Driven plans such as those backed by UICI:

• Offer members a sense of control over the money they spend;
• Provide accurate, comprehensive cost information;
• Provide doctor and hospital quality and outcome information;
• And offer robust education and support services.
The white paper will be posted on UICI's web site: http://www.uici.net.

UICI members with Consumer-Driven health plans know how UICI's powerful, yet easy-to- use technology empowers them to shop for doctors and hospitals. But the UICI survey found most Americans don't know such resources exist.

Only 36 percent of Internet users said they were aware that information comparing prices and quality of doctors is available online. Similarly, only 34 percent said they were aware that this type of information is available about hospitals online.

The reason is clear. Most consumers simply don't have access to high quality information to assess doctors and hospitals. UICI's white paper explains what information consumers should look for in a Consumer-Driven Health Plan, such as those offered by HealthMarket, The MEGA Life and Health Insurance Company, and The Mid-West National Life Insurance Company of Tennessee.

The UICI survey also found:

• 56 percent of those who bought a car in the past five years used the Internet to help make this choice -- typically spending more than five hours to do so.
• 44 percent of those who bought a computer used Internet research to help choose one, usually spending more than four hours online.
• The vast majority of Internet car and computer shoppers, more than eight out of ten, looked for information on both quality and price.

By contrast:

• Only 22 percent who chose a new doctor used the Internet for help. Those who did spent slightly more than two hours -- about half the time spent looking for information about computers.
• Only 12 percent of hospital patients used the Internet to choose a hospital.

The UICI survey of 1,016 American adults, including 706 Internet users, was conducted by telephone from Aug. 31-Sept. 4, 2005, as part of a national omnibus survey by International Communication Research. The survey has a margin of error of plus or minus three percentage points.

SOURCE UICI

Elizabeth Elegant for UICI, +1-312-596-3496,

http://www.prnewswire.com

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About HealthMarkets

HealthMarkets, headquartered in North Richland Hills, Texas, is a provider of health and life insurance products to individuals, families, the self-employed, Medicare beneficiaries and small businesses. HealthMarkets offers products and services through its licensed insurance subsidiaries The MEGA Life and Health Insurance Company, Mid-West National Life Insurance Company of Tennessee and The Chesapeake Life Insurance Company. The Company’s offerings include individual and self-employed health insurance, small employer group health insurance, life insurance and reinsurance. Through its Consumer Guided Health Insurance plans, HealthMarkets seeks to provide affordable and accessible health coverage to individuals and small businesses. The Company is owned by a group of private equity investors, including affiliates of The Blackstone Group, Goldman Sachs Capital Partners and DLJ Merchant Banking Partners, members of management and the Company’s independent, licensed agents through the Company’s agent stock accumulation plans. For more information, visit http://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.

Media Contacts:

Donna Ledbetter
HealthMarkets Corporate Communications
(817) 255-5405
Donna.Ledbetter@healthmarkets.com
www.HealthMarkets.com

Karen Mellen
For HealthMarkets
(312) 596-3487
Karen.Mellen@bm.com