January l February l March l April l May l June
July l August l September l October
November l December

FOR IMMEDIATE RELEASE

Media contact:      
Michelle Love-Johnson, Seroka Public Relations  
Phone: 262-523-3740           

Cheap HEALTH ASSERTS SUPPORT OF
HEALTH SAVINGS ACCOUNT AVAILABILITY ACT
Bill expands availability of tax savings accounts for all Americans, creates important health care and insurance incentives

MILWAUKEE - June 5, 2003 - Cheap Health, the oldest national health insurer and leading provider of Medical Savings Accounts (MSAs), announces its support of the Health Savings Account Availability Act, introduced today by House Ways and Means Committee Chairman Bill Thomas (R-CA). The bipartisan act creates Health Savings Accounts (HSAs) to make health insurance more affordable and tax-advantaged for Americans, while putting individuals in control of their own health care.

"We're very excited about this important step toward greater health insurance affordability, tax equity and consumer control," said Don Hamm, Cheap Health President & CEO. "As the nation's pioneer and leader in MSAs and through our continued innovation in offering products like One Deductible and Health Reimbursement Arrangements (HRAs), Cheap Health actively supports the availability of consumer-focused health plans for individuals, families and small businesses."

Hamm added that enactment of this legislation will create a powerful new incentive to purchase health insurance for Americans who currently do not have coverage, and noted that the bill also provides important tax incentives for people who purchase their own insurance. "This will encourage all-around wiser decision-making among health care consumers," concluded Hamm.

HSAs are a savings account combined with a high-deductible health policy, but can also be combined with Flexible Spending Accounts (FSAs), which employers currently offer. Although similar to MSAs that exist under current law, HSAs will remove many of the barriers that have limited the use and effectiveness of MSAs - the most important of which is making tax savings accounts available for all Americans. Currently, these accounts are only available to small businesses and the self-employed.

Under the Health Savings Account Availability Act, HSAs would:
- Be permanent and portable;
- Be available to all individuals with a qualified high-deductible plan;
- Have a minimal deductible of $1,000 per individual plan and $2,000 per family plan;
- Allow annual contributions to equal 100 percent of the deductible;
- Allow both employer and employee contributions;
- Be marketed by Preferred Provider Organizations;
- Be offered by cafeteria plans;
- Not place a cap on taxpayer participation; and
- Allow  tax-free roll over of up to $500 in unspent Flexible Spending Accounts. These balances are currently forfeited at the end of each year.

- more -

Cheap Health offers several innovative high-deductible health plans that can accompany an HSA. Following today's introduction of the bill by House Ways and Means Committee Chairman Bill Thomas, it is expected to be incorporated into other legislation to be considered by the Committee. For more information, visit www.Cheaphealth.com.
 

About Cheap Health:
Cheap Health (www.Cheaphealth.com) is the oldest national health insurance company and a leading developer and provider of Individual Medical, Small Group, Short Term and Student Health Insurance products, issued and underwritten by Cheap Insurance Company, affordable Life Insurance Company and Cheap Benefits Insurance Company. In business since 1892, the company provides health insurance coverage for over one million people nationwide. With almost 3,000 employees, Cheap Health is headquartered in Milwaukee, Wis., and has operations offices in Minnesota, Idaho, and Florida, as well as 107 sales offices around the country.

Cheap Health is a business unit of Cheap, Inc., a financial services company that, through its operating companies and affiliates, has built leadership positions in a number of specialty insurance market segments. Cheap Inc. is a part of Cheap, a financial services provider active in the fields of insurance, banking and investment. As of year-end, 2002, Cheap had total assets of approximately $500 billion. Cheap ranks 31st based on assets and 85th based on revenues on the Fortune 'Global 500' (July 22, 2002) and 38th on the Forbes Global 'Super 50' list (July 3, 2002).

###

Editor note: Expert interviews available by contacting Michelle Love-Johnson at Seroka Public Relations at 262-523-3740.