HealthMarkets Announces Three Year Contract with CVS Caremark

NORTH RICHLAND HILLS, Texas--(BUSINESS WIRE)--HealthMarkets, Inc. (http://www.healthmarkets.com) announced today that it has signed a three-year contract with CVS Caremark (http://www.caremark.com) for Pharmacy Benefit Management Services. The services are now available for all members who have a policy through HealthMarkets^® subsidiary insurance companies.

“Through our proactive approach, we are able to deliver to HealthMarkets members both a convenient and cost-effective way to receive and manage their prescriptions, increase engagement in their health care and manage medication costs.”

HealthMarkets^® is the brand name for health insurance products underwritten and issued by the health insurance subsidiaries of HealthMarkets, Inc., located in North Richland Hills, TX. Health insurance products provided under the HealthMarkets brand are designed to provide personalized protection to individuals, families, the self-employed and small businesses.

"HealthMarkets is proud to partner with CVS Caremark for these services and offer our members this important, cost-saving benefit that will help maximize their healthcare dollars," said Phillip J. Hildebrand, President and Chief Executive Officer for HealthMarkets. "We want to help simplify the process for our members in managing and obtaining necessary prescriptions. Whether it is medication necessary to manage their health or recover from an illness, this partnership enables them to receive their prescriptions at an affordable cost."

Plan members with this benefit have the choice of getting their medicines at one of the more than 62,000 locations in the CVS Caremark retail pharmacy network or through the CVS Caremark mail service pharmacies for home delivery of maintenance (long-term) medicines.

“We are pleased to continue our relationship with HealthMarkets and to extend our Proactive Pharmacy Care model to their membership,” said Howard McLure, President, CVS Caremark Pharmacy Services. “Through our proactive approach, we are able to deliver to HealthMarkets members both a convenient and cost-effective way to receive and manage their prescriptions, increase engagement in their health care and manage medication costs.”

About HealthMarkets

HealthMarkets^® is the brand name for products underwritten and issued by the insurance subsidiaries of HealthMarkets, Inc. -- The Chesapeake Life Insurance Company^®, Mid-West National Life Insurance Company of Tennessee^sm and The MEGA Life and Health Insurance Company^sm. Products provided under the HealthMarkets brand are designed to provide personalized protection to individuals, families, the self-employed and small businesses. For further information regarding products offered by the HealthMarkets’ Companies, visit www.healthmarkets.com. The administrative offices of HealthMarkets, Inc. and its underwriting companies are located in North Richland Hills, Texas. Products are marketed through independent agents in sales offices across the country. For more information about the HealthMarkets Companies visit www.healthmarketsinc.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.