Associated Administrators Inc. Integrates MyHealthBank Finance 3.1 to Offer New Cash Account Management Capabilities for Employers.

PORTLAND, Ore. -- MyHealthBank today announced that Portland-based Associated Administrators, Inc. (AAI) will implement MyHealthBank's Finance 3.1 software to administrate and track a variety of insurance and cash account products, including health savings accounts (HSAs) and health reimbursement accounts (HRAs), through highly automated and fully integrated processes.

AAI is a third party administrator (TPA) and provides cash account management services for all sized companies in the Pacific Northwest. With the increasing demand for cash account-based health plans, AAI sought to help employers control health care costs and introduce opportunities for employee involvement. Furthermore, AAI wanted the ability to serve a broader national market of employers seeking cash account adjudication services.

In order to accomplish this, AAI looked to MyHealthBank's Finance, a streamlined financial services system that automates the adjudication of cash account claims by TPAs and insurers. The Web-enabled software provides benefit administrators and employees real-time access to track and manage deposits, payments and balances across multiple, interdependent accounts. These can range from new financial products, such as HSAs, to all types of cash accounts, including Health FSAs, transportation and dependent care accounts, and HRAs.

MyHealthBank Finance will allow AAI to provide an online interface for cash accounts to employers and employees. Because the cash account adjudication system is branded to the insurer and TPA and offered via their Web sites, these customers maintain a high level of member service and brand awareness.

"MyHealthBank Finance is the premier cash account administration system in the market today, " said Jim Myers, president and CEO of AAI. "With this structure in place, we expect to grow our cash account business by 20 percent, and will see a fast and practical return on investment."

AAI has purchased the latest version of MyHealthBank Finance, which integrates with HSA Bank functionality for HSA investment and management services. This integration capability is unique to the market and provides an optional speed-to-market solution for insurers and TPAs wanting to offer HSAs. It alleviates an insurer's need to seek out separate banking and brokerage relationships required for HSAs, and provides an easy plug-and-play integration between the banking system and the insurer's cash account claims adjudication system.

The new version of MyHealthBank Finance also includes:

--HSA integration, which allows TPAs to provide administrative services for HSA accounts including contribution tracking, discrimination testing and integrated administrative fee billing;

--Full integration with debit card functionality for cash accounts;

--Claims Import Module, allowing integration with insurer and TPA claims systems to import the member responsibility portion of insurance claims eliminating the need for paper submission and manual data entry;

--Administrative Fee Billing Module, which provides automated employer administrative fee billing with complete flexibility in fee schedules;

--Enhanced funding options and reconciliation functionality. Finance 3.1 supports virtually any type of cash account funding model. The system has a virtual bank account system that tracks all funds movement to facilitate bank account reconciliation and cash management.

"With the recent rulings from the Treasury Department on HRAs and HSAs, cash accounts are being noticed as a viable approach to control health care costs and involve employees and consumers in their care," said Steve Sterba, president and CEO of MyHealthBank. "AAI is among a large constituency of insurer and administrative service organizations looking to introduce more advanced ways to automate the adjudication and management of these accounts. They are now well positioned to benefit from the growing employer demand."

AAI offers multiple types of cash accounts, as well as eligibility and claims administration of self-funded medical plans, Taft-Hartley trust administration, access to preferred provider networks. It will begin offering MyHealthBank's Web-based cash account management and adjudication services to its customers by November 1, 2004.

MyHealthBank Finance is part of the company's Unify suite, a Web-based, self-service platform for broker quoting, member enrollment, benefits administration, deep eligibility rules testing and profile maintenance for health plans, including defined contribution plans. MyHealthBank Unify product suite includes MyHealthBank Direct, MyHealthBank Quote, MyHealthBank Transact, MyHealthBank Finance, and MyHealthBank Navigator, which can be implemented independently or in tandem as a core enterprise platform.

About MyHealthBank:

MyHealthBank's vision is to empower health insurers with solutions that drive a consumer-driven health care economy. As the pioneer and specialist in consumer-driven health care software systems, the company offers the expertise to enable insurers to implement consumer-driven health plans rapidly and cost-effectively, within their existing brand and infrastructure.

MyHealthBank's products and services are based on the three principles of consumer-driven health care: (1) self-service, Web-enabled administration, (2) integrated insurance and financial services and (3) comprehensive knowledge and decision support for making informed health care choices. For more information, please contact 503-445-6000, visit www.myhealthbank.com, or email [e-mail].

About Associated Administrators Inc.:

Associated Administrators, Inc., was formed in 1962 and purchased by Regence BlueCross BlueShield of Oregon in 1992. As the premier TPA in the Pacific Northwest, AAI delivers financial strength to employee benefit plan sponsors through efficient administration, access to the most cost-effective provider networks, and integrated plan management with a family of companies specializing in predictive medical management, fraud and abuse, reinsurance, and pharmacy benefit management. For more information, please contact 503-727-2307, visit www.aai-tpa.com, or email [e-mail].