A.M. Best Upgrades Ratings of UPMC Health Plans; Revises Outlook to Positive.

OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating (FSR) to B++ (Good) from B+ (Good) and assigned an issuer credit rating (ICR) of "bbb" to UPMC For You, Inc. Concurrently, A.M. Best has affirmed the FSR of B++ (Good) and assigned an ICR of "bbb+" to Community Care Behavioral Health (CCBH) and affirmed the FSR of B++ (Good) and assigned an ICR of "bbb" to UPMC Health Plan, Inc. and UPMC Health Network, Inc.. The outlook for the FSRs has been revised to positive from stable, and a positive outlook has been assigned to the ICRs. All entities are domiciled in Pittsburgh, PA.

These ratings are based on the companies' strategic roles as the managed care affiliates to the University of Pittsburgh Medical Center (UPMC), a fully integrated health care delivery organization and one of the nation's premier academic medical centers. These ratings also consider UPMC's creditworthiness to enhance each health plan's stand-alone rating, well-established provider networks, diversified health plan product offerings and expanded membership. UPMC has demonstrated its explicit financial support of the health plans through capital contributions, including surplus notes.

The outlook revisions reflect the health plans' consistent operating performance and continued membership growth across all of its product lines through innovative product designs that are recognized by the employer market as well as the senior Medicare market. The plans' risk-based capital remains below the threshold for the current rating based on Best's Capital Adequacy Ratio (BCAR), reflecting the importance of UPMC's creditworthiness in the plans' stand-alone rating enhancement.

UPMC For You recently experienced a turn-around in profitability due to increases in base capitation rates from the commonwealth and UPMC For You's ability to receive additional funds from a high-risk pool. Program demand is not forecast to abate, and UPMC is well positioned strategically and financially to remain a key participant. UPMC For You also exited from several counties in which the plan had poor experience. Projections indicate that earnings could be stable in the medium-term and membership growth is expected.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.