eHealthInsurance Supports Congress Bipartisan Tax Credit Provisions in the Fair Care for the Uninsured Act

New eHealthInsurance Data Confirms Tax Credits will Meaningfully Impact the Uninsured

SUNNYVALE, Calif. — April 3, 2001 — In a letter to House Majority Leader Dick Armey (R-Texas) and Rep. William Lipinski (D-Ill.), eHealthInsurance, one of the nation’s leading distributors of health insurance for individuals, families and small businesses, announced its support of the tax credit provisions of the bipartisan Fair Care for the Uninsured Act. Rep. Armey and Rep. Lipinski will introduce the legislation today at a press conference in Washington, D.C. Simultaneously, eHealthInsurance will release its new data confirming that the Act’s tax credit proposal is substantive.

“From our experience in marketing and selling health insurance nationwide, the Fair Care for the Uninsured Act will have a powerful influence on one of the largest barriers for the uninsured, which is affordability,” said Vip Patel, chairman and founder of eHealthInsurance.

“Tax credits help to raise the buying power of the uninsured. The Internet provides broad access to valuable information about the affordability of health insurance through sites like eHealthInsurance.com. Together, The Fair Care for the Uninsured Act and the Internet provide a truly powerful combination for the uninsured,” said House Majority Leader Dick Armey.

In analyzing a sample of the most recent 20,000 approved health insurance applications through eHealthInsurance, the company concluded:

1) The tax credit amounts can cover a meaningful portion of insurance premiums: Out of 20,000 approved single and family applications, 15,000 fall within 75 percent to 100 percent of proposed tax credit amounts.

2) The tax credit amounts can purchase benefit coverage that is meaningful to the marketplace: Of the 20,000 applications, 93 percent purchased either an HMO or PPO product. Of the HMO products purchased, 80 percent contained a $0 deductible. Of the PPO products purchased, 71 percent had less than a $1000 deductible.

3) The tax credits will be relevant to a broad population (if within the income limits): The 20,000 applications were submitted and approved across 40 different states, representing 93 percent of the U.S. population. The ages of people included the full pre-Medicare range from age 1 to age 64.

“Over 40 percent of those who have applied for health insurance through eHealthInsurance.com were previously uninsured,” Patel said. “The Fair Care Act is another step toward achieving a bold, but realistic, objective that eHealthInsurance has been suggesting to members of Congress and the private sector. The goal is to work together to reduce the number of uninsured Americans by 50 percent by 2010.”

Click here to view the text of the endorsement letter.

About eHealthInsurance

Founded in 1997, eHealthInsurance (www.ehealthinsurance.com) markets individual, family and small business health insurance and was responsible for the nation’s first Internet-based sale of a health insurance policy. The company has become the No. 1 destination for purchasing health insurance online by offering the broadest selection of health insurance companies and plans nationwide at the best available prices, and delivering unparalleled customer service through qualified customer service professionals.

eHealthInsurance is funded by Dell Computer, Goldman Sachs, Kleiner Perkins Caufield & Byers, Lightspeed Venture Partners (formerly Weiss, Peck & Greer Venture Partners), QuestMark Partners, L.P. and The Sprout Group (Credit Suisse First Boston). The management team and board include former or current executives of Aetna, Arthur Andersen, Foundation Health, Healtheon, Hewlett Packard, IBM, MetLife, PacifiCare, Silicon Graphics, United Healthcare, Viewpoint Corporation (formerly MetaCreations) and other leading healthcare and technology companies.

eHealthInsurance.com is a registered trademark of eHealthInsurance Services, Inc.

For More Information:

Emily Fox

eHealthInsurance

PH: 650-210-3140

emily.fox@ehealthinsurance.com