Some Employers Face Unexpected Health Coverage Dilemma This Enrollment Season - Desire to Implement Health Savings Accounts Thwarted by Section 125 Plans.

National consumer driven healthcare thought leader available for
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WHO:     Jerry Ripperger, Director of Consumer Health, the Principal
         Financial Group(R)

WHAT:    By March 2005, more than one million health savings accounts
         had been opened. The number of insurers offering high
         deductible health plans with health savings accounts (HSAs)
         has tripled over the past year, with continuing growth
         expected in 2006.

         For those employers looking to offer HSAs as a way to manage
         health benefit costs, there's a major factor to consider: the
         status of their health flexible spending accounts (FSAs)
         and/or Section 125 premium only plans.

         Many employers will find that they are unable to implement
         HSAs due to decisions that they have previously made (or not
         made) regarding their Section 125 programs. An individual
         cannot have a traditional health FSA and contribute to an
         HSA. When the anniversary date of the FSA and the year of the
         health plan don't match, transitioning to an HSA can be
         complicated, and may take up to two years to implement.

         Some may unknowingly complicate the situation further by
         adding the recently announced IRS grace period to their
         flexible spending account. The grace period allows FSA
         members to use accumulated funds through the 15th day of the
         third month after the end of the health plan year.
         Individuals will not be able to contribute to an HSA during
         this grace period.

         "It is important to understand how the various tax advantaged
         arrangements work together to produce the best result for an
         employer. Careful planning, education, and communication are
         key for success" stated Ripperger.

         The Principal Financial Group is the nation's premier
         provider of employee benefits, and serves more than 1.6
         million members with insured and self-funded health insurance
         plans.

WHEN:    Interviews can be arranged with experts from the Principal
         Financial Group by telephone following receipt of this
         advisory. Comments also can be taken from the statement
         above.

CONTACT: To arrange and interview with Jerry Ripperger, please contact
         Rhonda Clark-Leyda, 515-247-6634,
         [e-mail]