X0202 4 2006-04-11 0 0000773660 HealthMarkets, Inc. N/A 0001182257 MCCARTY C JACK 2301 W PLANO PARKWAY SUITE 300 PLANO TX 75075 0 0 0 1 Division Manager Stock Option 11.40 2006-04-11 4 D 0 6000 D 2002-12-08 2007-01-07 Class A-1 Common Stock 6000 0 D Stock Option 9.25 2006-04-11 4 A 0 5535 A 2002-12-08 2007-01-07 Class A-1 Common Stock 5535 5535 D The two reported transactions involved an amendment to an outstanding option, resulting in the deemed cancellation of the "old" option and the grant of a replacement option. The exercise price of the original option ($11.40) and the number of Class A-1 common shares issuable upon exercise of such option (6,000) were adjusted in a manner that preserves the aggregate "in the money" value of the option. The option otherwise remains subject in all respects to the terms of the 1987 Restated and Amended Stock Option Plan. C. Jack McCarty By /s/ Peggy G. Simpson, POA 2006-07-07