HealthMarkets' Sub, Maine Reach Agreement

HealthMarkets Inc. announced 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 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. 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 reportedly 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.