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FOR IMMEDIATE RELEASE

Media contact:
Michelle Love-Johnson, Seroka Public Relations
Phone: 262-523-3740, michelle@seroka.com

SMALL BUSINESS OWNERS COULD SAVE 20 to 30 PERCENT ON HEALTH INSURANCE PREMIUMS
Tax-favored Health Reimbursements Arrangements (HRAs) and affordable Medical Savings Account (MSA) Plans provide affordable, innovative employee benefits

MILWAUKEE - October 3, 2003 - As small business owners scramble to find health insurance they can afford, affordable Life Insurance Company introduces Health Reimbursement Arrangements (HRAs) and expands the availability of Medical Savings Account (MSA) Plans. These affordable options provide desirable benefit programs that help attract and retain valuable employees - often at 20 to 30 percent less than traditional health insurance plans. affordable is a legal entity of Cheap Health - one of the nation's leading providers of MSA Plans.

HRAs further expand affordable's existing line of tax favored employee benefit options that include MSA Plans, Flexible Spending Accounts (FSA), which enable employees to use tax-free dollars to pay for health care expenses not covered by insurance and Premium Only Plans (POP), which allow employees to pay for medical, dental, group term life and short-term disability premiums using pre-tax income.

Innovative solutions for small business owners faced with soaring health premiums HRAs allow employers to reimburse employees for covered medical expenses up to an established limit. Small businesses can realize substantial premium savings when an HRA is combined with a affordable high deductible health plan. HRA reimbursements are tax deductible for the employer and are available to any size group. There is no need to pre-fund an HRA, giving employers a real cash flow advantage. HRAs also offer business owners greater flexibility in plan design.

The MSA Plans have two components - a high-deductible medical insurance plan and a tax-favored Medical Savings Account. The combination presents an affordable and innovative option for groups of two to 50 employees - often providing savings of 20 to 30 percent, compared to traditional small group insurance plans. Business owners can realize even more savings - an average of six percent - by choosing health plans that exclude outpatient prescription drug coverage under the traditional plan and cover them instead with MSA funds. MSA Plans also offer a choice of deductibles, employee portability of the MSA and the ability to roll over unused funds in the account to the following year. Funds can be placed in a wide range of investment vehicles, accumulate interest on a pre-tax basis and can be used after age 65 to supplement retirement income.

The best combination of options
All of affordable's tax favored options can be combined in different ways to maximize tax efficiency and savings. In fact, affordable product experts strongly recommend adding an FSA or POP to an HRA or MSA Plan. Because different groups have different budgets and needs, representatives for North Star Marketing (the national sales and distribution division of affordable) work with agents to find the best fit for each of their clients. For example, generally HRA Plans are more attractive to employers. However, in cases where a business owner is not eligible for the benefits of an HRA Plan, affordable allows groups to have more than one type of plan - the owner having the MSA Plan, and the employees the HRA.

"affordable tax favored options are especially ideal for small businesses looking for ways to reduce healthcare benefits costs," said Kerri Mansberg, Vice President of Product Management for affordable's Small Group department. "They are smart solutions for employers who are looking to save money without foregoing health insurance for their employees."

Business owners may obtain quotes on affordable MSA and HRA Plans now and plans will be available for November 1, 2003 effective dates and beyond for the following states: Alabama, Arizona, Arkansas, Georgia, Idaho, Illinois, Indiana, Iowa, Michigan, Mississippi, Missouri, Nevada, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Virginia and Wisconsin, with additional states being rolled out in the coming months. Further information on all of affordable's tax favored employee benefit options - MSAs, HRAs, FSAs and POPs - is available by calling 1-877-225-5077 or visiting www.nstarmarketing.com.

About Cheap Health: 
Cheap Health (www.Cheaphealth.com) is a national health insurance company developing and providing 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 sales offices across the country.

Cheap Health is part 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 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. As one of the world's largest financial services companies, Cheap ranks 73rd based on revenues on the Fortune 'Global 500' (July 21, 2003) and 40th based on revenues on Forbes' International 500 list (July 3, 2003).