Consumers Rank Vivius Model Tops among Consumer-Choice Health Plans.

Business Editors/Health/Medical Writers

MINNEAPOLIS--(BUSINESS WIRE)--Sept. 9, 2003

Health Insurance Association of America (HIAA) Survey Shows 78

Percent of Privately Insured Adults Rank Vivius Plan Favorably;

Only 60 Percent Rank HRA Plans Favorably

Consumers greatly preferred the Vivius plan over the health reimbursement arrangement (HRA) type of consumer-choice health plan in a recent nationwide survey of 600 privately insured adults sponsored by the Health Insurance Association of America (HIAA), Washington, D.C.

Among consumers who were read plan descriptions, 78 percent had a favorable opinion of the Vivius plan, while only 60 percent had a favorable opinion of HRA plans. And nearly twice as many had an unfavorable opinion of HRA plans (36 percent) than those with an unfavorable opinion of the Vivius plan (19 percent). The survey of 600 adults, conducted this summer by the nationally recognized research firm, Public Opinion Strategies, has a margin of error of +/- 4 percent. To see the results: http://www.hiaa.org/research/research_studies.cfm.

The national survey confirms a series of focus group studies that HIAA sponsored earlier this year in which consumers also expressed overwhelming preference for the Vivius model. The focus group studies asked participants to read descriptions of consumer-choice health care plans and rate each one on a scale of one (very unfavorable) to 100 (very favorable), with 50 as neutral. The plans were only identified generically (e.g. "Plan J").

Consumers in HIAA focus groups in Denver gave Vivius a total score of 80, compared with 49 for HRA plans. Similarly, consumer focus groups in Philadelphia assigned Vivius a total score of 64 while giving the HRA model a 46.

The consumer focus groups were comprised of adults ages 25 to 55 who have employer-provided health insurance coverage. They were split by socioeconomic status into two groups: those with less than a college degree and $60,000 or less in annual household income, and those with a college degree or higher and household income of $60,000 or more.

"We're not surprised that the HIAA study participants liked Vivius, because in our enrollments, more than 90 percent of plan participants choose our model over other coverage options," said David Teckman, CEO and president, Vivius. "What did surprise us was that even in the absence of a product demonstration, the study participants still clearly preferred the Vivius model. Consumers who experience our product have an even stronger preference for it, once they see it and use it." (To see the Vivius model, go to http://www.vivius.com).

The Vivius Personalized Healthcare System (PHS) is a proprietary interactive system that insurers can private-label and offer to groups in addition to more traditional health insurance models. The Vivius PHS allows consumers to build their own custom health plan with co-payments, premiums and provider networks unique to each family member. Employees receive a predetermined amount of money, commonly called a defined contribution, toward the cost of medical coverage for themselves and their family members. They then enroll through a secure Web site, powered by Vivius, to create personal panels of doctors and hospitals for themselves and each covered family member.

Unlike HRA plans, the Vivius PHS provides employees with actual insurance coverage, not a lump sum to be tapped for medical services and tests. Participants have greater independence to make their own health care decisions, depending on individual or family needs.

HIAA focus group participants stated their preference for the Vivius model: "It gives me total flexibility and choices." "I can choose a plan with all the benefits I need for the price allotted by my employer." "I like it because I can choose the doctor or hospital where I want or need to go."

In a separate set of HIAA focus groups conducted in Orlando, Fla., small-business owners and consumers also preferred the Vivius model over the HRA model of consumer-choice care: by a total score of 73 to 65 in one rating; and 74 to 68 in a second rating. The small-business owners represented companies with four to 30 employees; the consumers were ages 25 to 55, with college degrees, annual incomes of $60,000 or more, and employer-provided health insurance.

A November 2002 report published in Health Affairs estimated that consumer-choice health plans have a current enrollment of 1.5 million people, and could comprise up to 50 percent of the health care market within five years. To see the Health Affairs report, go to: www.healthaffairs.org/WebExclusives/Gabel_Web_Excl_112002.htm.

About Vivius

Based in Minneapolis, Vivius Inc. is a leader in the emerging consumer-choice health care industry, giving consumers, employers and physicians more choices, flexibility and control than traditional health insurance and managed care products. The Vivius Personalized Healthcare System (PHS) is a proprietary interactive system that allows consumers to build their own custom health plan with co-payments and provider networks that are unique to each family member. In 2003, Vivius and Health Net Life agreed to introduce the Vivius model in 14 additional markets over the next three years. Health Net Life is a subsidiary of Health Net, Inc., (NYSE:HNT), one of the nation's largest publicly traded managed health care companies. With Nashville-based HealthSpring, middle Tennessee's largest independent managed care company, Vivius offers its plan under the name UChoose HealthSpring. To learn more and see a demonstration of the Vivius program, go to http://www.vivius.com.

About the Health Insurance Association of America

The Health Insurance Association of America (HIAA), based in Washington, D.C., is the nation's most prominent trade association representing the private health care system. Its nearly 300 members provide health, long-term care, dental, disability, and supplemental coverage to more than 100 million Americans. It is the nation's premier provider of self-study courses on health insurance and managed care. For more information, go to http://www.hiaa.org.