SHPS and HealthMarkets partner to provide Carewise® Health services to individuals, the self-employed, and small business plan members

Louisville, Ky. (January 14, 2009) — SHPS, a leading provider of health improvement and health benefits solutions, announced a multi-year service agreement today with the insurance subsidiaries of HealthMarkets, Inc. a provider of individual, self-employed, and small business health insurance products. SHPS will provide Carewise Case Management to all HealthMarkets® plan members and Carewise Utilization Management to HealthMarkets® PPO plan members.

Through their agreement with SHPS, the HealthMarkets insurance subsidiaries will now be able to provide expert clinical guidance to their members regarding specific health issues. Nurse counseling services will be available to all individuals who have a high level of clinical risk and are in need of one-on-one support for more than 40 unique health conditions, including diabetes and coronary artery disease.

“We are excited about the benefits that our partnership with SHPS will provide to our members. HealthMarkets and SHPS recognize that customers need to receive timely information, appropriate medical care and personalized guidance through a complex healthcare system,” said Phillip J. Hildebrand, the President and Chief Executive Officer of HealthMarkets, Inc. “By working together, we can assist our members early in the process and provide a positive and simplified insurance experience when they need care.”

“We are pleased to join HealthMarkets in serving the individual insurance market with tools and resources that are typically only available to group health plans,” said Rishabh Mehrotra, SHPS President and CEO. “Our first priority is improving the health and quality of life for HealthMarkets’ members. These services will enhance the value and delivery of healthcare that their members receive.”

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 Tennesseesm and The MEGA Life and Health Insurance Companysm. Products marketed 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.