ADVISORY/Hewitt Associates Available for Comment on State Health Care

    Business Editors
    ADVISORY...

    LINCOLNSHIRE, Ill.--(BUSINESS WIRE)--April 21, 2005--Facing severe budget constraints, more than 30 states have introduced bills to address the growing problem of uninsured and underinsured workers. Aimed at companies of varying sizes (with anywhere from 25 to 10,000 or more employees), the legislation that states are considering would:

    1. Mandate employers to provide a basic level of health care
    coverage to employees or contribute to a state fund to cover
    public health care costs. At least 10 states are considering
    this type of "pay-or-play" legislation. Going one step
    further, California, whose voters overturned a proposed
    "pay-or-play" initiative last year, along with Minnesota, has
    introduced legislation that would require residents to have a
    basic level of health insurance. Also of note, Maryland
    recently introduced an employer health insurance mandate bill
    that would, in effect, impact only one employer in the state.

    2. Require companies receiving state awards or contracts to
    provide health care to employees. At least 11 states have
    introduced bills related to this option.

    3. Publicly report the names of companies whose employees receive
    public health care assistance. At least 20 states are
    considering this. In February 2005, Massachusetts became the
    first state to publish a report with the names of employers,
    the number of their employees receiving public health
    assistance, and an estimate of the related cost to taxpayers.

    Experts from Hewitt Associates (NYSE:HEW) are available to discuss what's driving this action by the states, whether the trend toward mandates might move to the federal level, how these initiatives might impact employers and employees, and possible alternatives to mandates.
    To schedule an interview with a Hewitt spokesperson or to get more information, please contact: JoAnne Laffey, (847) 442-7648, joanne.laffey@hewitt.com Maurissa Kanter, (847) 442-7655, maurissa.kanter@hewitt.com

--30--BM/cg*

CONTACT: Hewitt Associates JoAnne Laffey, 847-442-7648 joanne.laffey@hewitt.com or Maurissa Kanter, 847-442-7655 maurissa.kanter@hewitt.com

KEYWORD: ILLINOIS INDUSTRY KEYWORD: INSURANCE HUMAN RESOURCES ADVISORY SOURCE: Hewitt Associates

Copyright Business Wire 2005