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August 31, 2006
GUARDIAN TO SELL EQUITY STAKE IN PHCS TO MULTIPLAN
Sale Supports Efforts to Continue Providing Competitive Products to its Health Plan Members
New York, August 31, 2006 — The Guardian Life Insurance Company of America (Guardian), a leading provider of employee and voluntary benefits to small and mid-sized companies, today announced that it plans to sell its equity stake in PHCS to MultiPlan, Inc., a national medical network leasing company. The transaction is part of Guardian's ongoing efforts to provide competitive products to its Group Medical clients. The terms of the deal will not be disclosed.
PHCS is presently and, after the sale, will continue to be Guardian's primary medical network. Guardian will retain long-term access to the network. Guardian's network coverage will remain uninterrupted and the company expects that the change will be seamless to its customers who use the PHCS network.
The Guardian Life Insurance Company of America, Trustmark Mutual Holding Company and Assurant Health established PHCS in 1985 to develop a national managed care network. Since then, PHCS has grown into the largest independent primary PPO network in the country, contracting with nearly 450,000 providers and serving over 16 million health plan members. The three companies have agreed to sell their interests and MultiPlan will become full owner of PHCS.
"This transaction is an important step forward in increasing the competitiveness of Group Medical and in affirming our long-term commitment to this business," said Gary Lenderink, Executive Vice President, Risk Management Products, Guardian. "The combined networks will provide us with significant benefits including access to both the PHCS and MultiPlan provider networks to better help our clients address rising healthcare costs. It provides us with a strong opportunity to continue to enrich the lives of the communities that we serve by providing best in class products and services. We are committed to ongoing enhancements to better serve our customers, policyholders, and associates."
About Guardian
Founded in 1860, The Guardian Life Insurance Company of America, New York, NY (Guardian) is one of the largest mutual life insurance companies in the United States. As of December 31, 2005, Guardian and its subsidiaries had $36.9 billion in assets (on a consolidated statutory basis). With more than 5,000 employees and 3,000 financial representatives, as well as over 85 agencies nationwide, Guardian and its subsidiaries protect individuals, businesses, and their employees with life, disability, health, long-term care, and dental insurance products, and offer 401(k), financial products and trust services. More information about Guardian can be obtained at: www.GuardianLife.com.
About MultiPlan
For 35 years, MultiPlan has helped healthcare payers and providers partner together to combat rising healthcare costs. MultiPlan serves as a single gateway to a host of primary, complementary and out-of-network strategies for managing the financial risks associated with healthcare claims. Clients include large and mid-sized insurers, third-party administrators, self-funded plans, HMOs and other entities that pay claims on behalf of health plans. MultiPlan is owned by an investment consortium led by The Carlyle Group. For more information, visit www.multiplan.com.
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