A.M. Best Assigns Ratings to Capital District Physician Health Plan, Inc. and CDPHP Universal Benefits, Inc.

OLDWICK, N.J. -- A.M. Best Co. has assigned financial strength ratings of B++ (Very Good) and B+ (Very Good) to Capital District Physician Health Plan, Inc. (CDPHP) and CDPHP Universal Benefits, Inc. (UBI) (both of Albany, NY), respectively. The outlook for both ratings is stable.

CDPHP has significantly expanded its product offering and now offers a full range of products with flexibility in plan design and rates with the introduction of its Preferred Provider Organizations (PPO) product. CDPHP has maintained its core competitive advantages and has improved both its operating margins and capital position.

CDPHP is committed to remaining in government sponsored programs as long as it remains profitable. However, A.M. Best has concerns regarding higher than average exposure to Medicaid, Medicare and government employee accounts. This concentration subjects the company to legislative changes and policy shifts on the state and federal level.

UBI has experienced double-digit growth in both membership and revenue for the last two years. However, A.M. Best does recognize that a large percentage of this membership is transferring from UBI's parent, CDPHP. The capitalization level at UBI remains very low. The company is capitalized via surplus notes from CDPHP. While CDPHP's consolidated capital level, which includes UBI, is more than adequate, the level of capitalization at UBI on a stand-alone basis is considered weak.

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