A.M. Best Awards Blue Shield of California A- Rating, Praises Strong Provider Networks.

SAN FRANCISCO--(BW HealthWire)--July 20, 1999--

Noting strong provider networks and a diversified product portfolio, A.M. Best Company has affirmed Blue Shield of California's A- (Excellent) rating.

The rating also reflects the company's excellent position in the small-group and individual-health market in California, as well as its continued profitability.

A.M. Best praised Blue Shield for developing a significant market position in California by providing a continuum of managed-care products. This includes the state's largest preferred provider organization (PPO) -- with over 50,000 physicians -- point-of-service (POS) and HMO plans.

"Ensuring that Californians have access to high-quality care at a reasonable price is a mission to which Blue Shield of California is completely committed," A.M. Best Company said in a prepared statement. "Product diversity, coupled with the support of a strong provider network, gives substantial competitive advantages in accessing health-care providers and, ultimately, in controlling medical cost."

"We're extremely proud of both the size and quality of the provider network we've assembled," said Karen Schievelbein, chief financial officer for Blue Shield. "We view our physicians and hospitals as our partners in providing accessible, affordable healthcare to our members."

Other aspects of Blue Shield's strength highlighted by AM Best included: -0-

--   Identification of consumer segments. As part of its long-term
     strategy, Blue Shield has invested time and resources in learning
     who its customers are and what they want.

--   Consistent profitability. Blue Shield's six-year run of
     profitability has translated into approximately a 60 percent
     increase in the company's overall capital position.

--   Service design. Blue Shield has been superior in designing
     consumer services such as mylifepath.com, an award-winning health
     information resource on the Web that gives all Californians free
     access to discounted services from alternative health
     practitioners.

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Blue Shield of California, an independent member of the Blue Shield Association, is one of the state's leading health care companies, with over 2.1 million HMO and PPO members and $2.5 billion in annual revenue. The 886,000-member HMO is one of the fastest growing in the state. The 50,000-physician PPO network is the largest in California.

The not-for-profit health plan was founded in San Francisco in 1939 as the nation's first medical service prepayment plan.