AMS Finalizes Dispute Involving Former Pharmacy Benefits Manager

American Medical Security Group Inc., (AMS) has settled a dispute involving its former pharmacy benefits manager, ProVantage Inc. The dispute reportedly related to pricing and prescription drug fees charged from 1995 through 2002.

Under terms of the agreement, AMS will receive a one-time payment of $5.85 million. As a result of the settlement, AMS’ first quarter 2004 financial results will include a one-time gain of approximately $0.23 per share, net of related expenses.

American Medical Security Group, through its operating subsidiaries, markets health-care benefits and insurance products to small businesses, families and individuals. Insurance products of American Medical Security Group are underwritten by United Wisconsin Life Insurance Company. The company serves customers nationwide through partnerships with professional,
independent agents and quality health care providers.