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HEALTHMARKETS' SUBSIDIARY REACHES AGREEMENT WITH MAINE BUREAU OF INSURANCE

HealthMarkets Subsidiary Agrees to Provide Partial Refund to Meet Maine's Guidelines

North Richland Hills, Texas – April 3, 2008 – HealthMarkets, Inc. (http://www.healthmarkets.com) announced today that its wholly owned subsidiary, The MEGA Life and Health Insurance Company (MEGA) has reached an agreement with the Maine Bureau of Insurance regarding premium rates in that state.

HealthMarkets, through its insurance subsidiaries including MEGA, is a leading provider of affordable health and life insurance to the self-employed, individuals and small businesses.

As part of the agreement, MEGA will refund a portion of the premium collected from customers in Maine who were insured from 2004 to present day. The refund was agreed to after cooperative discussions with state regulators and will move the Company into compliance with state regulations regarding the minimum loss ratio.

"When we first entered the individual health insurance market in 2004, our filed rates were designed to reach and exceed the required 65 percent minimum loss ratio," said Michael Colliflower, Executive Vice President and General Counsel for HealthMarkets. "However, since this was a small and growing group of customers, we did not meet that threshold on an annual basis, a fact which we reported as required to the Maine Bureau. Through cooperative discussions with the Maine Bureau, we have agreed to this action to resolve this issue and move forward in a fully compliant manner."

In late 2005, the Company filed a 15 percent rate reduction to customers to meet the required "minimum loss ratio" but further review of data showed that the rate adjustment was insufficient. MEGA will file new rates with the Maine Bureau to review and approve for new business in the state within the next 30 days.

The Company will submit customer and refund data to the Maine BOI for review and expects to begin mailing refunds within the next 60 days.

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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