A.M. Best Assigns Ratings to MVP Health Plan of New Hampshire Inc.

OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating (FSR) of B+ (Good) and an issuer credit rating (ICR) of "bbb-" to MVP Health Plan of New Hampshire Inc (Bedford, NH). A.M. Best also has affirmed the FSR of B+ (Good) and assigned ICRs of "bbb-" to MVP Health Plan, MVP Health Insurance Company (d/b/a MVP Health Care) (both of Schenectady, NY) and Rochester Area Health Maintenance Organization (d/b/a Preferred Care) (Rochester, NY). The outlook for all ratings is stable.

These ratings reflect MVP Health Care/Preferred Care's strong operating performance, well established regional presence and sound growth strategies. Since their merger in January 2006, MVP Health Care/Preferred Care has continued to have favorable operating results driven by its commercial and Medicare managed care products. MVP Health Care/Preferred Care's growth strategy includes introduction of new co-branded products including plans that offer benefit choices at the individual employee level and built in wellness tools and geographic expansion of current product offering. The organization also formed a strategic alliance with CIGNA HealthCare in 2007 to offer a cost competitive national network solution to national employers with a presence in the MVP Health Care/Preferred Care market area.

Offsetting rating factors include concentration of earnings in the government sector, declining enrollment and competition from large national providers and local BlueCross Blue Shield plans. The favorable operating results of MVP Health Care/Preferred Care's Medicare Advantage products could be pressured in the future due to the funding uncertainty around this government program. MVP Health Care/Preferred Care has experienced a commercial enrollment decline due to pricing and competitive pressures in the health care market. This decline is not expected to continue and initiatives taken by the organization including: geographic expansion, new product development and plans to speed enrollment and reduce cost through sales force automation, should result in enrollment growth in the medium term. Competition in the MVP Health Care/Preferred Care's service area is expected to remain strong, with large national insurers, Blue Cross Blue Shield plans and local plans all vying for business.

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