AOL Interactive Services, the Internet
division of America Online, Inc.
today announced that Provident American Corp. will become the exclusive direct marketer of medical insurance on AOL and AOL.COM.
Under the initial term of the agreement, which runs for one year following launch, Provident will make guaranteed payments to AOL totaling $8 million. If Provident extends the agreement another two years, an additional $32.5 million will be payed. AOL will also be given warrants to purchase Provident American common stock.
AOL said the new interactive site will be part of the AOL Insurance Center, with technical support provided by HealthPlan Services, which claims to be the largest third party administrator in the country.
As part of the agreement, Provident banners displayed throughout AOL.COM and AOL will link users to Insurion Inc., Provident’s newly formed subsidiary that plans to offer a range of health insurance services online.
Provident American is partnered with the First Health Group network, whose
roster includes 231,000 doctors and 2,600 hospitals, providing access to 80%
of U.S. population.
“Provident American is a sophisticated marketer that recognizes
the unparalleled value of AOL’s brand and audience,” said Barry Schuler,
president of AOL Interactive Services. “This agreement will deliver real
value and convenience to our users–offering AOL users easy access to
Provident American’s low cost, high quality health care insurance products
coupled with important medical and health care related information.”
