Medagate and InComm Launch OTCNetwork(TM), the First National OTC Benefits Disbursement & Redemption Network for Medicare Advantage Plan Members

REDWOOD CITY, CA–(Marketwire – October 27, 2010) –  Medagate Corporation, a leading provider of over-the-counter (OTC) health care benefit platform solutions and services, in partnership with InComm, the leader in sales and marketing of prepaid products and innovator of transaction processing, today launched OTCNetwork™, the first national Over-The-Counter (OTC) benefits program for Medicare Advantage plans and their members. OTCNetwork features patented and patent pending technology with acceptance at national, regional, and local retailers. Initial retailer rollout will start immediately in New York, with expanded national rollout slated for early 2011, comprising in total 20,000 retail locations in all 50 states. Health Plus Elite and Access Medicare will be the first to leverage Medagate’s new OTCMedicare™ branded health benefits card to make OTC Medicare benefits more accessible to their Medicare Advantage members for use in self-care, and in an effort to increase member satisfaction and reduce member healthcare costs.

“Over 11 million Americans are enrolled in Medicare Advantage plans, which provide $5.5 billion in OTC Medicare benefits annually. Yet, only four percent of those benefits are actually consumed each year because plan members do not have convenient access to their benefits for use in self-care,” said Devin Wade, President & Founder of Medagate. “This lack of OTC benefit access costs Medicare billions of dollars in unnecessary doctor and hospital visits, resulting from patients seeking care for less serious ailments treatable with OTC medications or for ailments that go untreated and later require urgent care. Increasing member overall health and self-care through OTC items dramatically reduces healthcare costs, and increases member satisfaction and re-enrollment rates.”

“Our retailers recognize the future of healthcare will include a heavy dose of self-care programs in an effort to improve general health and reduce costs,” said Mark Leonard, EVP of InComm. “With an increasing demand for more convenient access to OTC items, Medagate is a key partner for InComm, offering this retail OTC benefits program not just for our drug channel retail partners but also for our extensive network of discount, grocery, and convenience store retail locations nationally. For the first time, Medicare Advantage plan members will be able to use their benefits for self-care via OTC items when they need them.”

“We are extremely pleased to be able to offer our Medicare Advantage plan members more convenient access to their OTC Medicare benefits via the OTCMedicare benefits card,” said Dr. Clifford D. Marbut, Chief Medical Officer of Health Plus Elite. “This will empower our members with the ability to maintain better health to treat non-serious health ailments immediately and reduce patient doctor visits.”

Deployed for acceptance at leading retailers nationally, OTCNetwork is the first national OTC benefits program for Medicare Advantage plans and their members. Medicare Advantage plans load monthly OTC Medicare benefits onto OTCMedicare branded, re-loadable benefit cards, which plans distribute to their members. Medicare Advantage plan members can then access their benefits via participating retailers nationally using their OTCMedicare benefits card, which is restricted to the purchase of OTC Medicare eligible items only for use in self-care.

About InComm:
InComm is the industry leading marketer, distributor and technology innovator of stored-value gift and prepaid products using its state-of-the-art point-of-sale transaction technology to revolutionize retail product sales and customer experiences. With nearly $10 billion in retail sales transactions processed in 2009, InComm is the nation’s largest provider of gift cards, prepaid wireless products, reloadable debit cards, digital music downloads, content, games, software and bill payment solutions. InComm partners with consumer brand leaders around the world to provide more than 225,000 retail locations the products and services their customers demand. Since 1992, InComm’s patented technologies have made the buying process easier for consumers while streamlining the selling process for product and retail partners. InComm is headquartered in Atlanta, GA with offices in Australia/New Zealand, Canada, Japan, Mexico, Puerto Rico, the United Kingdom, Arkansas, California, Colorado, Florida, Georgia, Minnesota, Oregon, and Texas. To learn more about InComm, visit www.incomm.com or call 1.800.352.3084.

About Medagate Corporation:
Medagate Corporation is a leading provider of health care benefit platform solutions and services. Medagate’s innovative technology, products, and services empower consumers with greater access to health care benefits for use in self-care. Medagate powers the OTCNetwork™ in partnership with InComm — the leading issuer and processor of gift cards, processing over $15 billion in transactions annually. OTCNetwork acceptance is today integrated into front-of-store Point-Of-Sale (POS) terminals at over 20,000 retail locations in all 50 states. Medagate’s OTCMedicare™ branded re-loadable prepaid cards are the first to restrict spending exclusively to OTC Medicare benefits eligible items. For information on Medagate, OTCMedicare prepaid cards, and the OTCNetwork, please visit: www.otcnetwork.com.

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