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MCIC Press Release

July 14 , 2008

Health Insurer Stocks Drop After Revised Earning Forecasts

Contact:  The MCIC
Phone:    732-292-1100

MANASQUAN, NJ -- July 14, 2008: The share prices of seven of the major health insurers have tumbled over the past year and could continue to decline, according to a report by The Executive Report on Managed Care.

A comparison of stock prices from April 11, 2007 to April 11, 2008 showed drops between 7 percent and 48 percent for health insurers. The decline began surfacing last year, the report states, as Humana, WellPoint and Coventry revised their initial earnings forecasts.

Aetna reported a $3.33 decline from $44.35 to $41.02 between April 11, 2007 and April 11, 2008, a 7 percent decrease in stock value. The 2008 value represented a 31.6 percent difference from Aetna’s 52-week high of $60 a share.

Similarly, CIGNA experienced a drop in its stock price, going from $48.96 in to $41.85 in one yea. The 14.5 percent decrease, though more than Aetna’s, represented only half of Coventry’s 28 percent loss.

Political pressure and spotlight have been cited as reasons for the unstable market, as well as the costs that originally caused companies to revise their earnings estimates.

For more information on The Executive Report on Managed Care, visit http://www.healthresourcesonline.com/managed_care/14nl.htm.

Address: The Managed Care Information Center, 1913 Atlantic Ave., Ste. F5, Manasquan, NJ 08736; (732) 292-1100, www.themcic.com.