Clear Choice Health Plans Selects Adaptis to Improve Member Service.

BEND, Ore. -- Clear Choice Health Plans, Inc. (OTCBB:CCHN) today announced it has entered into a multi-year agreement with Adaptis, a Seattle-based business process outsourcing leader committed exclusively to the healthcare industry, under which Clear Choice Health Plans will transition much of its claims administration and financial services to Adaptis.

Clear Choice Health Plans said the transition, which is expected to be completed on or about July 1, 2008, is expected to provide its members and providers with improved services by streamlining procedures and improving efficiencies.

"Clear Choice's growth has placed increasing demands on our internal claims processing system, resulting in higher costs and reduced efficiency," said Randy Cline, Executive Vice President and Chief Operating Officer for Clear Choice Health Plans. "These inefficiencies have resulted in a doubling of our claims processing costs since 2005 and were preventing us from reaching our membership and financial goals.

"A thorough review of our existing systems and available software solutions led us to conclude that a strategic relationship with Adaptis will give Clear Choice access to new, advanced technology and technical expertise without the financial and organizational investment associated with purchasing and maintaining a new in-house claims processing system," Cline said.

Clear Choice said it expects the shifting of responsibilities to Adaptis operations to result in the elimination of approximately 30 internal positions by the end of 2008. For functions that remain in-house, the shared services business platform is expected to streamline existing processes and decrease manual interventions, freeing up time and resources for Clear Choice to focus on its core business, which has always been serving its members.

"A reduction in workforce is never easy, especially in a close-knit company such as Clear Choice," said Cline. "We are doing everything we can to ensure that affected employees use what they have learned at Clear Choice as a positive step forward in their professional careers."

In addition to offering an attractive transition package to affected employees that includes severance and bonus pay, continuation of employer-paid benefits and a free personal computer, Clear Choice will also provide career transition services through Right Management, conduct on-site job fairs, and work with local employers and the Oregon Employment Department to assist qualifying employees with their job searches.

"We have recently expanded into the Montana market, are about to introduce new products to Oregon, Idaho and Washington, and will soon take occupancy of our new building in northeast Bend," said Pat Gibford, Chief Executive Officer and President of Clear Choice Health Plans, Inc. "It's important for our members and for the community to understand that while this transition impacts the lives of individuals we care about, it is also the natural evolution of a growing organization. We expect to create new employment opportunities as we continue to grow our business."

The initial contract with Adaptis is for five years whereby Clear Choice Health Plans will pay a per member per month fee for claims administration and financial services. Clear Choice Health Plans will maintain the personal, high touch interfaces with members and providers by leveraging the Adaptis technology. The total cost of the transition to the Adaptis health payer services and supporting technology, including employee transition costs, are estimated to be approximately $3.7 million.

"Approximately half of the implementation and transition costs will be capitalized and then amortized over the initial five year contract with Adaptis," stated Gunnar Hansen, Chief Financial Officer. "The remaining implementation and transition costs will be expensed in 2008 and are expected to impact 2008 earnings by approximately $.60 to $1.00 per share."

After the initial transition, Clear Choice Health Plans anticipates cost savings from streamlined procedures and improved efficiencies. "We expect to recover all of the implementation and transition costs sometime early in the third year of our contract, however, there can be no assurance that this will occur," says Hansen. "While the transition is beneficial to the growth of our company, we do not underestimate the impact of this change on our employees and their families."

About Clear Choice Health Plans

Since 1995, Clear Choice Health Plans has developed affordable plans to meet the needs of employers, providers and consumers. Clear Choice offers health insurance, including Medicare Advantage plans, commercial plans, individual plans and third party administration to individuals and businesses throughout the region. The company also offers life, disability, dental, vision and voluntary benefits programs. Clear Choice is dedicated to the development of community-based health insurance plans. For information call 888-677-5852, visit www.clearchoicehp.com, e-mail [e-mail].

About Adaptis

Adaptis is a leading business process integration company committed exclusively to healthcare. Adaptis' claims management, medical management and other administrative services free healthcare payers from business process logistics so they can focus on taking care of members. The company currently serves more than two dozen clients in 16 states and the District of Columbia, and processes more than 30 million transactions per year for 1.2 million covered lives in Medicaid managed care, Medicare Advantage and commercial lines of business. Headquartered in Seattle, Adaptis will serve the needs of Clear Choice Health Plans through its regional operations center in Yakima, Washington. For more information visit www.adaptisinc.com.

Forward-Looking Statements

When used in this discussion, the words "anticipates," "expect," "will," "intends," "may," "believes," and similar expressions are intended to identify forward-looking statements. Such statements relate to, among other things, the cost savings, impact on earnings, improved efficiencies, and number of positions expected to be eliminated as a result of the strategic relationship with Adaptis, as well as the number of new positions to be created by the company's strategic growth initiatives. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Results of operations in any past period should not be considered indicative of the results to be expected for future periods. Clear Choice undertakes no obligation to hereafter update or publicly release any revisions to the forward-looking statements in this press release.