A.M. Best Affirms Ratings of The Regence Group.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 29, 2003 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) of Regence BlueCross BlueShield of Oregon (Regence BCBSO) (Portland, OR), Regence BlueShield (Seattle) and Regence BlueCross BlueShield of Utah (Regence BCBSU) (Salt Lake City) and their insurance entities. The Blue Cross and/or Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. companies are members of a four-state organization, The Regence Group. The rating outlook for Regence BlueShield and Regence BCBSU and their entities is stable. The rating outlook for Regence BCBSO and its entities is negative. The affirmation A solemn and formal declaration of the truth of a statement, such as an Affidavit or the actual or prospective testimony of a witness or a party that takes the place of an oath. An affirmation is also used when a person cannot take an oath because of religious convictions. of the ratings of these insurance entities of The Regence Group reflects the dominant market share of its member Plans in the Northwest and Intermountain in·ter·moun·tain adj. Located between mountains or mountain systems, especially lying between the Rocky Mountains and the Sierra Nevada or Cascade Range in the western United States. regions, along with its consolidated operating performance, albeit weaker than historical levels. Offsetting factors are the adverse effect of the capital intensive implementation of the company's new information system and the company's inability to move capital throughout the organization. The Regence Group consists of Regence BCBSO, Regence BlueShield, Regence BCBSU and Regence BlueShield of Idaho. The continuing strategy of The Regence Group 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 throughout the four-state organization. Within its service area, The Regence Group is one of the leading providers of health coverage, serving almost three million members. The Regence Group has established strong markets in both urban and rural areas, creating a strong overall market position with providers of health care. Year over year 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 have remained stable due to a managed medical loss ratio and controlled administrative expenses that are ultimately driven from overall efficiencies within The Regence Group. However, net income has not been as strong as in past years due to weakened investment results related to fluctuations in the equity markets. Regence BCBSO statutory capital and surplus have declined significantly due to an increase in non-admitted assets associated with investment in technology. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , premium rates for risk business continue to increase, ultimately straining Regence BCBSO's capital position. A.M. Best believes Regence BCBSO operations will need to address its weakened level of capital by going to external sources since the organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. of The Regence Group restricts Regence BCBSO's ability to freely move capital among the Regence Plans. This action could enhance Regence BCBSO's 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. , while securing its position for future initiatives. The financial strength rating of A- (Excellent) has been affirmed for Regence BCBSO and its following insurance entities: -- 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 -- Regence Life and Health Insurance Company -- Regence Health Maintenance of Oregon, Inc. The financial strength rating of A- (Excellent) has been affirmed for Regence BlueShield and its following insurance entities: -- Asuris Northwest Health -- RegenceCare The financial strength rating of A- (Excellent) has been affirmed for Regence BCBSU and its insurance entity, HealthWise. 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. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion