Priority Health Offers New Benefit Options

(February 8, 2005) -- Priority Health is releasing a new line of consumer-directed health care plans that offer Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), Flexible Savings Accounts (FSAs), and an online wellness incentive program. This portfolio of products is known as PriorityCEH^®, Consumer Engaged Healthcare.

"Providing benefits has become a challenge for employers," said Kim Horn, president and CEO for Priority Health. "That is why it became critical for Priority Health to provide viable solutions for employers to continue to provide health coverage for their employees."

The percentage of workers receiving health coverage from their employer fell from 65 percent in 2001 to 61 percent in 2004, reports the Kaiser Family Foundation's Employer Benefit Survey. The study also indicates that there are at least five million fewer jobs providing health insurance in 2004 than in 2001.

Priority Health's products offer a unique advantage because each is supported by a strong provider network with competitive discounts, high customer service standards, covered preventive services and convenient wellness programs. Priority Health has also released quality information on participating health care providers on its Web site. This enables members to evaluate a hospital's or a physician's performance in areas such as preventive health and disease management services, quality of care and overall patient satisfaction.

Priority Health's new CEH products provide a number of options including:

• HealthSavings^SM -- a high-deductible health plan that includes employee-owned, portable tax-free Health Savings Accounts (HSA).
  
• HealthAdvantage^SM -- a high-deductible health plan that includes a tax-advantaged Health Reimbursement Arrangement (HRA) funded by employer contributions that can be used for paying employees' qualified medical expenses.
• HealthFlex^SM (Flexible Spending Accounts) -- accounts that hold pre-tax employee contributions and can be used for paying qualified medical expenses.
• HealthbyChoice^SM -- an online wellness program that rewards employees for assessing their health risks and taking control of their health.

"We believe informed people who are actively involved in their health care decisions are the key to turning around the current health care trend," said Mark Zickel, associate vice president, sales. "That is why we created products that not only engage members in the health care cost equation but also support them in the consumer-driven health plan environment."

Employers can build their Consumer Engaged Healthcare strategy around Priority Health's HealthSavings product with an HSA or HealthAdvantage product with an HRA. Each can be enhanced with Priority Health's HealthbyChoice program that encourages healthy behaviors. HealthAdvantage can be also be supported by the HealthFlex (FSA) option.

Priority Health is collaborating with Mellon Financial Corporation to provide the financial support for its Health Savings Accounts.