A.M. Best Affirms Rating for Regence BlueCross BlueShield of Oregon.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 9, 2001 A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating of A- (Excellent) for Regence BlueCross BlueShield of Oregon (Regence BCBSO), Portland, Ore. The rating reflects the company's strong market profile, adequate capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. and good information system operating platform. Partially offsetting these strengths are the negative underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. results that have been consistently reported year after year, along with the competitive landscape, which consists of both large national health care organizations with regional and local niche providers. Regence BCBSO and its affiliated health maintenance organizations are the largest health care providers in Oregon covering approximately 1.1 million members or 42.7% of all members. The company maintains an adequate capitalization level for the level of insurance risk it maintains. Capital growth has been derived from investment earnings rather than operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the last several years. Regence BCBSO has made significant investment in its technology platform and is starting to recognize the cost savings related to customer transactions and information available to members. Regence BCBSO faces stiff competition from national, regional and local health care companies, with the level of market share declining over the last couple of years. While some of the decline in enrollment has been planned, the company is being pressured to produce a book of business that is profitable and stable. A.M. Best anticipates that the pricing actions taken should return each market segment to net operating profitability, however, A.M. Best does recognize the not-for-profit status of Regence BCBSO and its responsibility to the State. Regence BCBSO and its affiliates in Oregon entered a strategic alliance with three other regional Blue Cross Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. affiliated plans to form The Regence Group (TRG TRG Training Group TRG The Resource Group TRG Technical Resource Group TRG Technical Review Group TRG Technology Research Group TRG Tory Reform Group TRG Tactical Reconnaissance Group TRG Training received (on overtime forms) ). TRG consist of Regence BCBSO, Regence BlueShield (Washington), Regence BlueShield of Idaho and Regence BlueCross BlueShield of Utah (Regence BCBSU). The Boards of each of the affiliated plans provided oversight to all the plans. Three of the plans; Regence BCBSO, Regence BlueShield and Regence BCBSU have a direct affiliation with TRG, while Regence BlueShield of Idaho has a long-term management service agreement with TRG. TRG's strategy is to integrate and consolidate activities to enhance marketing effectiveness Marketing Effectiveness is the function of improving how marketers go to market with the goal of optimizing their marketing spend to achieve even better results for both the short-term and long-term. Also related to Marketing ROI and Return on Marketing Investment (ROMI). and improve operating efficiencies over the next few years. Additionally, A.M. Best affirmed the financial strength ratings of A- (Excellent) for Regence Life and Health Insurance Company, Regence Health Maintenance of Oregon and Regence HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, Oregon. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com . |
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