The Cure for “Use it or Lose it:” Eliminate the Hassles of Health Care Reimbursement with the First Dollar$ Debit Card

Linked to Flexible Spending Account, Card Allows for Easier, More Timely Payments; Benefits Employees and Employers

Contact:
Erin Gardiner, Public Relations Manager
(630) 737-5016
eringardiner@firsthealth.com

FOR IMMEDIATE RELEASE

DOWNERS GROVE, IL –November 8, 2004 – First Health (NASDAQ: FHCC), the premier national health benefits services company, today announced the availability of the First Health First Dollar$ debit card designed to make flexible spending accounts (FSAs) more user-friendly and easier to access. The card provides instant access to FSA funds for medical and dependent care expenses, helping to eliminate the hassles associated with filing claims and prevent the end-of-year woes that come with the realization that money is left in an account and can no longer be used.

The First Health First Dollar$ debit card is used like a credit card to pay for time-of-service transactions by the member. It can be used at any eligible FSA location—such as doctor and dentist offices, pharmacies and vision service centers—for expenses including co-pays, prescription drugs, allowable over-the-counter medications, eyeglasses, contact lenses and orthodontic devices such as braces. Approved expenses are automatically deducted from the member’s pre-tax account, providing a more streamlined way for members to access their FSA funds for medical and dependent care.

“Offering a debit card option is another way in which First Health engages employees, meeting their needs so that they can be more involved in their own health care without the frustrations many have come to expect when dealing with health care payments,” says Rob Corrigan, Director of Product Management, at First Health. “Because many employers are shifting to consumer-driven health plans, spending accounts are becoming more useful and the debit card removes some of the barriers that prevent employees from using these accounts.”

The First Dollar$ debit card delivers advantages to employees, providers and employers alike. Previously, FSAs had low participation because of cumbersome claims forms, double out-of-pocket payments and the wait for reimbursement checks. With First Dollar$, the transaction is electronic, making the process more timely, virtually eliminating claims forms and providing immediate payment to the provider. Increased employee usage results in more payroll deductions and fewer payroll taxes, driving FICA tax savings for the employers. As a result, employers can add value to employee benefits with little or no net cost.

To obtain updated information on their account, members will be able to call First Health member service representatives 24 hours a day, 7 days a week or access the My First Health member portal. The card is backed by MBI, the leading employee benefits software company that offers the first and most widely used benefits debit card. Over one million employees and 12,000 employers nationwide use the MBI Benefits Card for FSAs and other consumer-driven healthcare cash accounts.

About First Health
First Health, the premier national health-benefits services company, specializes in providing large payors with integrated managed care solutions. First Health is a unique national managed care company serving the group health, workers' compensation and state agency markets. Using technology to enable service and managed care innovations, First Health sets the bar for industry performance. For more information, visit the company website at www.firsthealth.com.