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View More Press Releases by Proweh Health Systems, Inc.

Press release:

Company announces 28% savings with "consumer-directed" health plan.

Issued by: Proweh Health Systems, Inc.

Date: Jan. 22, 2003

For more information contact Greg Romans
804-304-5534 Cell

Company announces 28% savings with “consumer-directed” health plan.

January 17, 2003. Birmingham, Alabama based Proweh Health Systems (PHS) Friday announced same six month healthcare savings of 28.0% for a client using their consumer-directed healthcare product MSAPlus®. Company analysts reported the savings based on May – October 2002 results, compared with the same six month period in 2001.

“Although everyone is talking about consumer-directed healthcare(CDH) plans the concept is so new there are few firms with year to year results,” said company president Gerald W. Chandler. “Other approaches are usually only one of many plan options making measurement difficult and often not meaningful. We are pleased to show actual client results which exceed even our expectations.” Mr. Chandler also noted that savings exceeded expectations of national benefits consulting group Mercer Human Resource Consulting who had issued, in late summer last year, an opinion stating that savings of 10-25% with MSAPlus® could be expected annually for the first five years of implementation.

The client report shows reductions of 25.0% in Diagnostic X-ray and lab costs per encounter, 57.9% in emergency room cost per visit and a shift of 11.3% to generic prescription drug purchases (over brand name prescription purchases). “Just as important,” said Mr. Chandler, “is the fact that physician office visits and the total number of prescriptions written increased 9.6% and 31.2%. One of the chief criticisms of consumer-directed healthcare is that employees would choose to avoid medical treatment to save money. Our results counter that. Physician visits, and prescriptions, are often preventive measures that help avoid more costly medical care in later years.”

Consumer-directed healthcare describes employee healthcare plans where employees are given responsibility to manage a portion of their health care costs and in return receive greater choice in selecting care and incentives for making wise decisions. “Although most CDH plans shift costs to the employee by placing a high deductible resulting in large out-of-pocket expenses on the employee the PHS model is much different. Our product, MSAPlus®, emphasizes positive incentives in exchange for behavior modification. Our model also is one of the most flexible in the market place allowing the employer to retain current plan design and other healthcare plan vendors. We offer a seamless overlay of the current plan reducing employee concern and confusion,” said Chandler.

Along with MSAPlus® which is a total benefits plan overlay PHS also offers MSAPlusRx™, a prescription drug program for companies who choose to separate their prescription plan from their health plan. Both products, as a result of patent filings last fall, are patent pending. “We now,” states Mr. Chandler, “are being requested to develop products for the public sector. With some minor product adjustments our approach will work equally as well with Medicaid and Medicare recipients and public sector employees.”

For more information: http://www.msaplus.com

View More Press Releases by Proweh Health Systems, Inc.

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