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Sierra Health Services Begins Marketing Medicare Prescription Drug Plan and Medicare Advantage PPO Plan In Nevada

Las Vegas, October 11, 2005 - Sierra Health and Life Insurance Company, Inc. (SHL), a wholly owned subsidiary of Sierra Health Services, Inc. (NYSE:SIE) has begun marketing its stand-alone Medicare prescription drug plan (PDP), SierraRx, throughout Nevada, for a January 1, 2006 effective date. Marketing is also underway for SHL's Medicare Advantage PPO plan, Sierra Spectrum, for Medicare beneficiaries in all of Nevada's counties.

SierraRx will be available through most major retail pharmacy chains and a large number of independent pharmacies. Sierra Rx plan members will have access to a comprehensive list of drugs for a monthly premium of $22.12. The plan also provides a mail order benefit for maintenance drugs, first dollar coverage for generic drugs and a $250 deductible for brand and specialty drugs.

Co-payments will range from as little as $1 for a 30-day supply of generic drugs to 25% coinsurance for specialty drugs, up to the initial annual coverage limit of $2,250. Once the initial coverage limit is reached, a coverage gap will occur and members will be responsible for 100% of their prescription drug costs until they reach a maximum annual out of pocket expense of $3,600. Once the maximum annual out of pocket expense is reached, catastrophic coverage will be available and the member will pay the greater of $2 for generic or brand name prescription drugs, $5 for specialty drugs, or a 5% coinsurance payment.

SHL will also participate with the Centers for Medicare & Medicaid Services (CMS) in the auto-enrollment of Medicare beneficiaries who also have Medicaid benefits, known as dually eligible beneficiaries. SHL expects to realize approximately 2,800 members from the initial auto-enrollment process.

SHL's Medicare Advantage PPO plan, Sierra Spectrum, will include a comprehensive prescription drug benefit similar to that of SierraRx. Plan members have a monthly premium of $39 in 2005. Sierra Spectrum also includes physician and hospital coverage.

For many years, Sierra has offered a Medicare managed care plan in Nevada through its subsidiary company, Health Plan of Nevada (HPN). HPN's plan, Senior Dimensions, has always provided a comprehensive pharmacy benefit for its members and will continue to do so in 2006. Current Senior Dimensions members do not need to take any action during the initial enrollment period as they will have the Medicare prescription drug plan available to them through their benefit plan beginning January 2006.

The CMS prescription drug plan enables SHL to expand its product line to include the stand-alone Sierra Rx PDP plan.

"Many Medicare beneficiaries have been in critical need of a comprehensive outpatient prescription drug plan," Jonathon W. Bunker, President of SHL, said. "We are pleased to provide that opportunity for them, through our stand-alone PDP, SierraRx, or our Medicare Advantage PPO, Sierra Spectrum."

Medicare beneficiaries can call the following numbers to find out more information about SierraRx and Sierra Spectrum benefit plans: SierraRx/866- 789-0565; Sierra Spectrum/702-562- 8021 or 877-559-4512.