A.M. Best Upgrades FHP of Illinois to "A-" -Excellent- From "B++" -Very Good-.OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 3, 1997--Effective immediately, A.M. Best Co. has upgraded the rating of FHP fhp or f.hp. abbr. friction horsepower of Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. to "A-" (Excellent) from "B++" (Very Good). The rating action follows the purchase of the Illinois 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, from PacifiCare Health Systems PacifiCare Health Systems (former NYSE: PHS) was a Fortune 500 healthcare company based in Cypress, California. It was acquired by UnitedHealth Group (NYSE: UNH) in late 2005, which continues to market health plans under the PacifiCare name. , Inc., by Principal Health Care, Inc. The transaction was completed on Oct. 2, 1997. The rating upgrade reflects the fact that FHP now will be owned by a company that has a greater commitment to the Illinois health-care market than Calif.-based PacifiCare. The acquisition also has long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. positive implications for Principal as it significantly accelerates membership growth in the Illinois marketplace. The addition of FHP adds approximately 68,000 members to Principal's enrollment, bringing the total membership to more than 100,000. This combination of the HMO plans reflects Principal's strategy of concentrating on markets in the Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians , Southeast, and the Mid-Atlantic regions. Principal Health Care is a subsidiary of Principal Financial Group, Inc., a family of companies offering insurance and other financial products to individuals, groups, and businesses. The health-care operation nationally provides managed health care to approximately 2 million members. The ultimate parent is the "A+" (Superior) rated Principal Mutual Life Insurance Co. FHP of Illinois benefits from the combined organization's financial strength, regional enrollment and commitment to the midwest market. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. CONTACT: A.M. Best, Oldwick Jeffrey Dunsavage, 908/439-2200, ext. 5618 dunsavj@ambest.com |
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