HealthSpring, Inc. Executives Adopt Rule 10b5-1 Trading Plans

2008-05-10 00:09:07 -

www.myhealthspring.com - HealthSpring, Inc. (NYSE:HS) today announced that Herb Fritch, Chairman, President, and Chief Executive Officer, and Kevin McNamara, Executive Vice President and Chief Financial Officer, each have adopted pre-arranged, non-discretionary stock trading plans to each sell a portion of their HealthSpring stock over time as part of personal, long-term strategies for liquidity, asset diversification, and estate planning. These plans were adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, and HealthSpring's policies with respect to stock transactions by Company insiders. Transactions under these plans will be disclosed publicly through Form 144 and Form 4 filings with the Securities and Exchange Commission.

Rule 10b5-1 allows corporate officers and directors to adopt written, pre-arranged stock trading plans when they are not in possession of material, non-public information. These plans allow insiders to diversify their Company holdings gradually, reducing any potential adverse market impact, while avoiding concerns over trading at a time when the insider may be in possession of material, non-public information.

Mr. Fritch's plan covers up to 1,000,000 shares of HealthSpring Common Stock, up to 500,000 of which will be subject to a variable prepaid forward-sale contract. Under the forward-sale contract, Mr. Fritch will retain voting and dividend rights and the ability to participate in future stock price appreciation until the expiration of the contract in December 2009. Mr. Fritch can elect to settle the forward-sale contract in cash. Mr. Fritch's plan also contemplates that sales of up to 500,000 additional shares of HealthSpring Common Stock may be made beginning on August 18, 2008 until June 16, 2009, subject to minimum per share sales prices. Mr. McNamara's plan covers 270,000 shares. Sales of Mr. McNamara's shares will be made over a one-year period commencing no earlier than June 16, 2008, and also are subject to minimum per share price limits. Under both plans, the sales price limits are in excess of the $17.76 closing sales price reported on the New York Stock Exchange for HealthSpring Common Stock on May 9, 2008.

About HealthSpring, Inc.

HealthSpring is based in Nashville, Tenn., and is one of the country's largest coordinated care plans whose primary focus is the Medicare Advantage market. HealthSpring currently owns and operates Medicare Advantage plans in Alabama, Florida, Illinois, Mississippi, Tennessee, and Texas and also offers a national stand-alone Medicare prescription drug plan. For more information, visit www.healthspring.com.

HTSP-G

HealthSpring, Inc.
J. Lankford Wade, 615-236-6200
Senior Vice President