More Than 70 Percent of Consumers Obtaining Health Savings Accounts Paid $100 Or Less For Their HSA-Eligible Health Plans

eHealthInsurance.com Introduces Health Savings Account Available Nationally

SUNNYVALE, Calif., April 21, 2004 – eHealthInsurance, the nation’s leading source of health insurance for individuals, families and small businesses, today released early market data about the costs paid for health insurance plans that were qualified to be paired with Health Savings Accounts, and the demographics of consumers who purchased them through eHealthInsurance.com. Since their introduction in January as part of the government’s Medicare drug legislation, 71 percent of people who bought HSAs in the first two-and-a-half months of their availability paid $100 or less per member per month (PMPM) for HSA-eligible health plans. The company today also introduced the eHealthInsurance Health Savings Account (HSA). The eHealthInsurance HSA provides some of the lowest fees and highest-value services available to consumers, and is now available in 27 states*, to more than 70 percent of the U.S. population.

Of the consumers who purchased HSA-eligible health insurance plans through eHealthInsurance.com in this sample, 56 percent were 40 years of age or older. The plans they purchased, while inexpensive, have comprehensive benefits once the deductible levels are met. Nearly half of the HSA-eligible health insurance plans studied covered 100 percent of office visits, lab and X-ray benefits, hospitalization, outpatient surgery, and obstetrics/gynecological exams. More than half of the HSA-eligible health plans covered 80 percent or more of the cost of emergency room visits after meeting the plan’s deductible level.

The eHealthInsurance HSA, as with any HSA, is available to consumers with an HSA-eligible health insurance plan. eHealthInsurance.com currently offers 175 different HSA-eligible plans, and will add more qualifying plans each month. The eHealthInsurance HSA can be paired with any HSA-eligible health insurance plan available on its site, www.ehealthinsurance.com.

The eHealth HSA features:

Some of the lowest fees available

No set up fee or monthly maintenance fees

Low fee for Securities Investment option ($1.25/month)

Choice of an interest-bearing account or a broad selection of no-load Securities Investments

Streamlined, online set-up process when applying for a HSA-eligible plan

Licensed customer care agents who can give information about the logistics and benefits of opening an HSA, as well as help in choosing the right HSA-eligible health insurance plan to meet consumers?health care requirements

“HSAs will revolutionize health insurance in the same way that IRAs revolutionized retirement funds. They offer a tremendous opportunity for consumers to take control of their health care and more of their taxable income at the same time,” said Robert Hurley, Vice President and Chief Operating Officer of Health Savings Account Solutions of eHealthInsurance. “Leveraging our position as the leading source of individual and family health insurance, we have negotiated some of the most consumer-favorable features available in a HSA today in the eHealthInsurance HSA. We already are experiencing high levels of interest in HSAs on our site. Offering consumers a high-value HSA along with a broad selection of low-cost HSA-eligible plans will encourage more people to move toward this new type of health care financing strategy, benefiting themselves and their families today and in the future.”

What is an HSA-eligible Health Plan?

An HSA-eligible health insurance plan has a deductible of $1,000 to $2,600 for an individual who is under age 65, or $2,000 to $5,150 for a family. There are additional qualifications, which are limits on out-of-pocket expenses for the consumer, reducing or eliminating co-pays and co-insurance. Overall, HSA-eligible health insurance plans can save consumers money on their health insurance premiums due to their higher deductibles and the tax savings that they receive for investing tax-free in a HSA.

Go to the eHealthInsurance Learning Center at www.ehealthinsurance.com for decision-making tools and a wealth of information on HSA-eligible health plans and HSAs. ?/span>A fact sheet illustrating the data included in the early market report released today can be found at /content/expertcenterNew/HSAFactSheet_Apr04.pdf.

In related news today, eHealthInsurance released its semi-annual report on the Cost and Benefits of Individual Health Insurance Plans. One of the report findings is that more than half of the individuals and more than a third of families in the sample have health plans with HSA-eligible deductible levels. The full report can be found at /content/expertcenterNew/ExpertCenter.shtml.

About eHealthInsurance

Since its founding in 1997, eHealthInsurance, Inc. (www.eHealthInsurance.com) has become the nation’s leading source of health insurance for individuals, families and small businesses. The company sells health insurance in all 50 states and offers more than 4,000 health plans underwritten by more than 140 of the nation’s leading health insurance companies. The company is headquartered in Sunnyvale, CA and has an experienced customer care team of more than 100 representatives and licensed agents that assist consumers before, during and after the purchase of health insurance plans.

eHealthInsurance.com and eHealth are registered trademarks of eHealthInsurance Services, Inc.

* States currently served include: Alabama, Alaska, Arkansas, Arizona, California, Delaware, Florida, Georgia, Iowa, Illinois, Indiana, Maryland, Michigan, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin, and Wyoming.

The trustee of the eHealth HSA is HSABank (www.hsabankusa.com)

Contact:

Emily Fox

eHealthInsurance

408/ 542-4840

[email protected]

Rebecca Mettler

eHealthInsurance

949/ 643-6765

[email protected]