News Release March 26, 2003 For Immediate Release: For further information contact: NEBCO Samuel H. Fleet President & CEO 16 International Way Warwick, RI 02886 Telephone: 877.739.3330 ext. 4121 Fax: 800.836.4617 sfleet@nebenefit.com NEBCO Assists REBCO in Establishing Affordable Health Plan for Former Employees of Bethlehem Steel Corporation WARWICK, R.I.-- (BUSINESS WIRE) -- March 26, 2003 -- The Retired Employees' Benefits Coalition (REBCO), an advocacy organization comprised of Bethlehem Steel Corporation (Bethlehem Steel) retirees and spouses has established a Voluntary Employee Beneficiary Association (VEBA) called REBCO Health Benefits Trust for Retirees of Bethlehem Steel. The VEBA will make health and other benefits available to more than 90,000 eligible retirees and former employees of Bethlehem Steel. The plans offered include health, life and dental plans. The VEBA has contracted with National Employee Benefit Companies, Inc., (NEBCO) as the outreach and service center for all benefit programs. NEBCO is an American Wholesale Insurance Group company -- the largest independently owned wholesale brokerage organization in the country. Over the past 12 months, the REBCO Board of Directors and NEBCO have been working to develop a retiree medical program that would meet the needs of the vast majority of REBCO's members. In reviewing the program options, it was important that any program developed meet the following criteria: Guaranteed acceptance No pre-existing condition limitations Prescription drug coverage Affordable monthly payments No gap in coverage as long as participants enroll within 30 days from the date Bethlehem Steel's benefits terminate The programs developed with NEBCO effectively meet this criteria. Due to Bethlehem Steel's bankruptcy, the majority of its retirees and laid-off employees will be left with limited health plan options including the loss of life insurance and dental benefits. NEBCO will administer an affordable health benefits program for both pre- and post-age 65 individuals and their spouses. These programs will be available to all eligible participants regardless of their health status. The Program will provide health and other related benefits at more affordable rates than would otherwise be available to retirees under any existing COBRA options. For instance retirees and/or their spouses over age 65 or older can obtain coverage for as little as $118 per month with a Generic prescription drug program. A retiree under age 65 may participate in the program for as little as $247 per month. During open enrollment, applicants are covered regardless of any pre-existing medical conditions (with prior credible HIPAA coverage). Members may participate beginning April 1, 2003. Bethlehem Steel will terminate its retirees' health coverage as of March 31, 2003, per the Bankruptcy Judge's order of March 24, 2003. NEBCO will also administer other health and life benefits recently terminated by Bethlehem Steel, including dental and life (including a senior life plan) benefits. NEBCO has assisted in the establishment of several other VEBA plans for thousands of displaced workers from companies facing financial hardship. REBCO Counsel Bruce E. Davis said his group was pleased with NEBCO's performance assisting retirees and former employees from other financially distressed companies. "Every REBCO member should review the NEBCO program." The rates are far lower than if someone with a medical problem tried to shop for health insurance on their own," he said. The program, which is a self-funded trust, will not be open to non-REBCO members for about two years, if at all, Davis said. NEBCO will service members through its state-of-the-art Customer Care Center, which is staffed with experienced benefits professionals. In addition, plan members can access their benefits and a health-information resource center online at www.MemberNetUSA.net/REBCO. To optimally service former Bethlehem Steel employees, a dedicated, toll-free number has been established at: 800-717-7458. According to Samuel H. Fleet, President and CEO of NEBCO, this program fits a tight budget for those who have lost their jobs, had their pensions reduced or are on a limited fixed income. "Health care is one of the biggest concerns retirees and displaced workers face. When their health benefits are terminated, there is a sense of panic and with the cost of health coverage today, many displaced employees are unable to afford basic health care coverage. We are pleased to service an employee benefit plan that is making affordable health benefits available to so many people who otherwise would go without coverage or pay exorbitant premiums. Our Customer Care Representatives have extensive experience servicing retirees and are particularly sensitive to the feelings of people whose benefits have been abruptly terminated," said Fleet.