Company Press Release: Mellon Financial Corporation
June 13, 2000
PITTSBURGH, PA -- Mellon Bank, N.A. yesterday announced that it will serve as the exclusive provider of medical
savings accounts (MSAs) offered to the more than 180,000 self-employed individuals and small business employees
in Cendant Corporation's (NYSE: CD) franchise network of real estate and tax preparation companies. They include
CENTURY 21®, COLDWELL BANKER®, ERA® and JACKSON HEWITT®. Mellon will be working with Flexible Benefit
Service Corporation (FBSC) to customize the MSAs, which are health insurance plans that combine money-saving higher-deductible
health care policies with tax-advantaged savings accounts for the self-employed or companies with 50 or fewer employees.
``We're very pleased to work with FBSC to offer Cendant's franchisees a complete, customized MSA program as an
attractive health care coverage alternative,'' said Paul S. Beideman, executive vice president and head of Mellon
Retail Financial Services. ``Our MSA program will offer many advantages as both a coverage and savings vehicle.''
``Mellon's MSA program, coupled with the industry management expertise of FBSC, will provide an ideal solution
for the individuals within our franchise network that are struggling with ever-increasing health insurance rates
and frustrating managed-care restrictions,'' said Craig Hamway, senior vice president of Cendant Preferred Alliance
Services.
``By offering significant changes in plan design and the tax codes that will change the way people think about,
and pay for their health care, Mellon's MSA program is clearly a better way to pay for health care,'' said Allen
Wishner, FBSC chief executive officer. ``It makes health insurance more affordable and accessible, and gives patients
the freedom to choose their own doctors and hospitals.''
Mellon's MSA program includes a medical savings debit card and checks, along with depository and investment options
that include interest-bearing checking accounts and multiple investment vehicles. MSA account holders can use their
medical savings debit cards or checks to purchase qualified health care-related goods and services with funds from
their deposit accounts tax- free. Mellon has been recognized as a leader in MSAs since legislation passed by the
U.S. Congress allowed them to be offered since Jan. 1, 1997. Under the program, employers or the self-employed
purchase high-deductible health insurance policies which typically have premiums up to 50 percent lower than low-deductible
plans. Employers or employees make regular tax-deductible contributions to the tax-advantaged MSAs, and unused
funds accumulate on a tax-deferred basis, similar to IRA plans.
FBSC consultants will work directly with Cendant's franchisees and self- employed to help determine the best health
care plan for each enrollee. Some of the nation's leading and well-known insurance companies will be providing
these plans.
Flexible Benefit Service Corporation, a Des Plaines, IL-based company, is dedicated to meeting the benefit needs
of companies nationwide by providing comprehensive services in health care delivery systems and related employee
fringe benefit programs. Their programs pursue a philosophy of providing employers and employees with benefit programs
that offer choices to meet individual needs and lifestyles. FBSC is recognized for its expertise as a specialist
in the plan design, communication, implementation and administration of flexible benefit plans.
Cendant Corporation (NYSE: CD) is a global provider of consumer and business services. The company's core competencies
include building franchise systems, providing outsourcing solutions and direct marketing. As a franchisor, Cendant
is among the world's leading franchisors of real estate brokerage offices, hotels, rental car agencies, and tax
preparation services. Headquartered in New York City, the company has approximately 30,000 employees and operates
in more than 100 countries.
Mellon Financial Corporation (NYSE: MEL) is a global financial services company. Headquartered in Pittsburgh, Mellon
offers a comprehensive array of banking services for individuals and corporations and is one of the world's leading
providers of asset management, trust, custody and benefits consulting services. Mellon has more than $2.8 trillion
in assets under management, administration or custody, including more than $500 billion under management. Its asset
management companies include The Dreyfus Corporation and Newton Management Limited (U.K.).
Press releases and other information about Mellon and its products and services are available at www.mellon.com
on the Internet. For Mellon press releases by fax, call 1-800-758-5804, identification number 552187.
SOURCE: Mellon Financial Corporation