A.M. Best Affirms and Upgrades Ratings of Health Net, Inc.OLDWICK, N.J. -- 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 ratings (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) and upgraded the issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) for the core insurance subsidiaries of Health Net, Inc. (Woodland Hills, CA) [NYSE NYSE See: New York Stock Exchange : HNT HNT Hostage Negotiation Team ], Health Net of California, Inc. and Health Net Life Insurance Company. Additionally, A.M. Best has upgraded the ICR to "bb+" from "bb" for Health Net, Inc. A.M. Best has also affirmed the FSRs and ICRs of the remaining subsidiaries of Health Net, Inc. The outlook for all ratings is stable. (See below for a detailed list of companies and ratings.) The upgrades of the ICRs for Health Net of California, Inc. and Health Net Life Insurance Company reflect the improvement in earnings and 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. at these entities over the past two years after a significant downturn in 2004. The growth in earnings is reflective of corrective measures taken to re-price and improve the profitability of the organization. As a result of the increase in earnings, the capitalization has improved as well. Offsetting rating factors include a decline in membership, which began as Health Net, Inc. re-priced its business. Commercial membership has continued to struggle as the market is very competitive. The upgrade of the ICR for Health Net, Inc. reflects the improvement in operations of the consolidated operations. The overall organization is impacted by the performance of its largest insurance entities, Health Net of California, Inc. and Health Net Life Insurance Company. The rating affirmations recognize the improvement in the operations of Health Net, Inc. over the prior periods as it has re-priced business and focused on more profitable markets. Furthermore, Health Net, Inc. has capitalized on the Medicare Part D program and has realized a continuation of strong results from the Federal Services sector. Health Net, Inc. has experienced a decrease in commercial enrollment throughout its organization as a result of re-pricing initiatives. The Northeast sector has experienced a modest turnaround as medical cost trends improved as a result of strong medical management and a decline in utilization. A.M. Best believes this segment may still be challenged for membership growth as it competes with large national and Blue Cross and Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. plans. The FSRs of B++ (Good) have been affirmed and the ICRs have been upgraded to "bbb+" from "bbb" for the following core subsidiaries of Health Net, Inc.: * Health Net of California, Inc. * Health Net Life Insurance Company The FSRs of B++ (Good) and the ICRs of "bbb" have been affirmed for the following subsidiaries of Health Net, Inc.: * Health Net of Arizona, Inc. * Health Net Health Plan of Oregon, Inc. The FSRs of B+ (Good) and the ICRs of "bbb-" have been affirmed for the following subsidiaries of Health Net, Inc.: * Health Net of Connecticut, Inc. * Health Net of New Jersey, Inc. * Health Net of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Inc. * Health Net Insurance of New York, Inc. The ICR has been upgraded to "bb+" from "bb" for Health Net, Inc. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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