eHealthInsurance Discloses Report on Cost and Comprehensiveness of Health Insurance

SUNNYVALE, Calif., June 21 – eHealthInsurance, one of the nation’s leading distributors
of health insurance for individuals, families and small businesses, today issued an unprecedented report
analyzing the purchasing decisions of 20,000 customers from across America who have obtained health insurance
for themselves or their families through

The data from the study indicates that health insurance coverage purchased directly by
individuals and families is generally less expensive and more comprehensive than
previously perceived by public policymakers and influencers.

House Majority Leader Dick Armey (R-Texas), Chairwoman of the Health Subcommittee of the
House Ways and Means Committee Nancy Johnson (R-Conn.), Representative William Lipinski
(D-Ill.) and Mark McClellan, adviser for the White House on health insurance issues,
publicly expressed the importance of eHealthInsurance’s findings, in that the study
results strongly suggest that proposed tax credits for the uninsured will enable them to
purchase comprehensive health insurance coverage in many cases. They also agreed that this
new information will help to advance the debate in Congress on how best to extend health
insurance to the uninsured.

“This study proves that a $1,000 tax credit is quite generous enough to buy not just
bare-bones but rather solid coverage — not just doctor visits but prescription drugs, not
just an insurance card, but peace of mind,” said House Majority Leader Dick Armey.

Highlights of the eHealthInsurance study include:

  • The average premiums for individual and family policies purchased through
    eHealthInsurance fall in the range of$1,200-$1,500 per person per year.

  • Eighty-eight percent of policies purchased by individuals and 84 percent of policies
    purchased by families (two or more related individuals) through eHealthInsurance could be
    considered “comprehensive” in comparison to “basic” coverage.

  • Of the sample of 20,000 individual and family policies purchased through
    eHealthInsurance, half charge premiums that are fully within the proposed tax credit
    amounts ($1,000 individual and $2,500 family) and three-quarters charge premiums that are
    within 75 to 100 percent of the proposed tax credit amounts.

“The data generated by eHealthInsurance provides key insight into the real
difference that tax credit legislation, such as the bill I have proposed, can make,”
said Nancy Johnson, chairwoman of the Health Subcommittee of the House Ways and Means
Committee. “The proposed tax credits are specific to health insurance relief and are
targeted incentives for reducing the number of uninsured Americans.”

“Not only do eHealthInsurance’s findings provide insight into the
cost-effectiveness of tax credits for the uninsured, the data also proves that the
proposed tax credit will cover plans that are good for the consumer,” said
Representative Bill Lipinski. ” We can provide uninsured Americans with the means to
find a comprehensive plan that’s right for them, and then reimburse them for it.”

“The eHealthInsurance report, which is based on real-world data on the affordability
of private health insurance, is another piece of evidence showing that health insurance
tax credits can significantly reduce the number of uninsured Americans. The report
highlights the importance of implementing a workable tax credit proposal, like that
proposed by President Bush and many members of Congress,” said Mark McClellan,
adviser for the White House on health insurance issues.

“The driving factor motivating eHealthInsurance is the opportunity to positively
change the lives of the 43 million Americans living without health insurance,” said
Vip Patel, chairman and founder of eHealthInsurance. “By analyzing our customer
purchases, we are able to provide real data to policy makers and influencers who are
seeking solutions to place affordable and comprehensive health insurance into the hands of
the uninsured. If our report helps clarify mis-perceptions and furthers real solutions,
then as an advocate for the uninsured, we have been effective.”

The full report on eHealthInsurance findings is available at