Filter News

American Medical Security Offering Small-Employer Group Products Used With Health Savings Accounts

Published: Oct 21, 2004

GREEN BAY, Wis., Oct. 20 /PRNewswire-FirstCall/ -- American Medical Security Group, Inc. (AMS), has expanded its portfolio of products for small employer groups to include high-deductible Health Savings Account (HSA) plans.

The new plans are now available from AMS agents in Illinois, Kansas, Michigan, Missouri, Texas, Virginia and Wisconsin. The HSA plans are expected to be available this month in Nebraska, Oklahoma and Tennessee. AMS began offering HSA-compatible products for individuals in January.

Created by Congress last year, HSAs represent a new, lower-cost approach to financing health care.

HSA-compatible insurance plans combine individually owned savings accounts with high-deductible major medical insurance, resulting in lower premiums. In addition, the new plan concept gives insureds the opportunity to use tax-free funds to pay day-to-day medical bills falling within the deductible and to save for future health-care expenses.

According to Samuel V. Miller, AMS President & CEO, the new product offering extends the company's long-standing commitment to consumer-directed health-care products.

"Our agents who serve the small-employer market have been very eager to have HSA products in their arsenal and to build their expertise," Miller said. "Both competitive pressures and demand from their employer-customers are driving that strong agent interest."

The new plans complement AMS' existing Health Reimbursement Arrangement compatible plans and other high-deductible plan designs for small employers.

A survey by the National Small Business Association indicates that in the face of continually rising health-care costs, 73% of small businesses are interested in learning more about HSAs. Beyond tax advantages, the higher deductibles of HSA products can allow lower premiums coupled with financial incentives for more discriminating use of health care.

American Medical Security Group, through its operating subsidiaries, markets health-care benefits and insurance products to small businesses, families and individuals. Insurance products of American Medical Security Group are underwritten by United Wisconsin Life Insurance Company. The company serves customers nationwide through partnerships with professional, independent agents and quality health care providers.

Cautionary Statement: This press release contains statements that may be considered "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to American Medical Security Group, Inc.'s HSA-compatible products. Future sales levels of the HSA-compatible products and the profitability of such sales depend on a variety of factors that may cause actual results to differ materially from those contemplated by such forward-looking statements. Such factors include, among others, the ability and willingness of agents to generate sales of the new products; the company's ability to predict future health care costs and adequately price the new products; competitive practices; consumer demand for HSA-compatible products; general economic conditions that impact the decisions of consumers to purchase our products; and other factors that may be referred to in the company's reports filed with the Securities and Exchange Commission from time to time. Forward-looking statements made in this release express expectations only as of the date they are made. The company does not undertake any obligation to update or revise such statements as a result of new information or future events.

American Medical Security Group, Inc.

CONTACT: Cliff Bowers, Vice President Corporate Communications ofAmerican Medical Security Group, Inc., +1-920-661-2766

Back to news