American CareSource Holdings Signs New Client Agreement With Insurers Administrative Corporation

DALLAS, TX--(Marketwire - December 10, 2008) -

American CareSource Holdings, Inc. (NASDAQ: ANCI) announced today that it has implemented a new client service agreement with Insurers Administrative Corporation (IAC), a national third party administrator (TPA), sales and marketing organization based in Phoenix, Arizona, and a member of the IHC Group, an insurance organization composed of Independence Holding Company (NYSE: IHC) and its operating subsidiaries.

 

Under the agreement, American CareSource will make available its full complement of ancillary care services to IAC clients through a network of ancillary care providers. IAC payor clients will save an estimated additional 10% on the ancillary claims that American CareSource manages. These savings should grow annually as American CareSource continues to expand its provider network in IAC's key market segments. American CareSource expects to realize an estimated $5 - $6 million in additional claims volume and annual revenue once the agreement is fully implemented.

Commenting on today's news, David S. Boone, Chief Executive Officer of American CareSource, stated, "We are delighted to be working with Insurers Administrative Corporation. This contract demonstrates our Company's continued growth and commitment to both the TPA and the fully insured individual and small group markets, two important segments of the healthcare industry. By providing affordable ancillary healthcare benefits to IAC, a leading TPA, we will enhance their focus of offering high quality, cost effective ancillary services for their payor agents. IAC's strong national presence, and in particular, the Southwest, will also allow us to gain a foothold in this critical market."

Frank P. Fugiel, IAC Senior Vice President of Network and Medical Management Services, stated, "Through IAC's claim processing solutions, American CareSource's services provide our clients with a unique product to help lower healthcare costs."

About Ancillary Healthcare Services

American CareSource provides ancillary healthcare services through its network that offers cost effective alternatives to physician and hospital-based services. This market is estimated at $574 billion, and has grown to 30% of total national health expenditures. These providers offer services in over 30 categories, including laboratories, dialysis centers, free-standing diagnostic imaging centers, non-hospital surgery centers, as well as durable medical equipment such as orthotics and prosthetics, and others.

About American CareSource Holdings, Inc.

American CareSource Holdings, the first national, publicly traded ancillary care network services company offers a comprehensive national network of approximately 2,500 ancillary service providers at over 25,000 sites. The Company's ancillary network and management provides a complete outsourced solution for a wide variety of healthcare payors and plan sponsors including self-insured employers, indemnity insurers, PPOs, HMOs, third party administrators and both federal and local governments. For additional information, please visit www.anci-care.com.

About Insurers Administrative Corporation

Since 1978, Insurers Administrative Corporation (IAC) has specialized in the administration, marketing and distribution of health benefit plans. As a full-service company providing third-party administration, program management, and marketing and sales assistance, IAC takes pride in providing outstanding, customer-focused service. For more information, visit www.iacusa.com.

About the IHC Group

The IHC Group is an insurance organization composed of Independence Holding Company (NYSE: IHC) and its operating subsidiaries, including Madison National Life Insurance Company, Inc., Standard Security Life Insurance Company of New York and Independence American Insurance Company. The IHC Group has been providing life, health and stop-loss insurance solutions for over 25 years. For more information on Independence Holding Company and the IHC Group, visit www.ihcgroup.com.

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Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:

Any statements that are not historical facts contained in this release are forward-looking statements. It is possible that the assumptions made by American CareSource Holdings, Inc. for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve further risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, and intellectual property rights, and the outcome of competitive products, risks in product development, the ability to complete transactions, and other risks identified in this release, and the Securities and Exchange Commission filings of American CareSource Holdings, Inc.