Americana Financial Defends Integrity of Steel Worker Benefits Plus, the Health Plan for Former Employees of LTV Steel.

Business Editors & Health/Medical Writers

WARWICK, R.I.--(BW HealthWire)--April 24, 2002

In response to recent comments attributed to United Steelworkers of America (USWA) Union's International President, Leo W. Gerard, regarding The Retired Steel Worker Benefits Plan and Trust (Steel Worker Benefits Plus), Americana Financial Services, Inc., the outreach and service center for the plan, issued the following statement from Americana's CEO and President Samuel H. Fleet.

"I am saddened and surprised by Mr. Gerard's reaction to Americana's efforts to provide thousands of displaced steel workers and their families with an immediate and affordable solution to their critical health benefits needs. While we also share Mr. Gerard's political concerns regarding pending legislation, we believe that the immediate health concerns of the steel workers should take precedence.

Americana firmly believes that the Steel Worker Benefits Plus logo does not infringe any rights of the USWA. Nonetheless, to allay the concerns of the USWA and in a spirit of cooperation, Americana is designing a new Steel Worker Benefits Plus logo and marketing literature. Most importantly, The Steel Worker Benefits Plus Plan is a viable, legal and affordable health benefits solution. The plan provides basic coverage at affordable payments. The plan is a building block begun by former LTV employees for former LTV employees and was designed with affordability in mind. In many cases, these unemployed steel workers must choose between the grocery bill and health care benefits. The benefits package is substantial, the cost is competitive, and the provider networks are extensive and accessible to the former LTV employees. The plan is a Voluntary Employee Beneficiary Association (VEBA) health benefits plan arranged by and for LTV retirees and former employees with the assistance of Americana Financial and other partners. Interest and support for the program has come from hospitals, provider networks, insurers, health plan administrators and related service providers.

Though Americana has worked diligently with constituents from LTV Corporation, its retirees and former employees over the past five months, Americana has done so without the involvement or encouragement of the USWA and it has never in any way represented that the USWA has endorsed this program. Americana has extensive experience in assisting employees and retirees in crisis when their health benefits have been abruptly terminated as in the case of Polaroid Corporation, Harvard Industries, Acme Steel, Doehler-Jarvis and many other companies facing serious financial hardship."

Americana is administering an affordable health benefits program and COBRA alternative for both pre- and post- age 65 individuals and their families. These programs are available to all eligible participants regardless of health status. With guaranteed issue, applicants are covered regardless of pre-existing medical conditions (with prior credible HIPAA coverage). Members may participate beginning May 1, 2002. Americana will also administer other health and life benefits recently terminated by LTV, including Dental, Life (not available yet in some states) and a Critical Illness Plan.

Americana is currently servicing plan members through its state-of-the-art Customer Care Center, which is staffed with experienced benefit professionals. In addition, plan members can access their benefits and a health information resource center online at www.MemberNetUSA.net/steel. To service the former employees of LTV a dedicated, toll free number has been established at: 800-717-7895.