A.M. Best Upgrades and Assigns Ratings to Western Health Advantage.

OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating (FSR) to B+ (Good) from B (Fair) and assigned an issuer credit rating (ICR) of "bbb-" to Western Health Advantage (WHA) (Sacramento, CA). The outlook for both ratings is stable.

The upgrade of the FSR reflects WHA's consistent trend of good underwriting performance supported by a competitive administrative cost ratio and a low-risk business profile. This is enhanced by the majority of its members being cared for under capitated arrangements with hospitals and physicians. The ratings are further supported by a contractual agreement with its three sponsors, NorthBay Healthcare System, Catholic Healthcare West and UC Davis Health System, which guarantees a minimum level of capital at the health plan. Each of the three sponsors is a financially strong integrated health care delivery system that operates within WHA's service area.

WHA has experienced good member growth in the past several years, especially in the small group market, which is a core line of business. The growth in membership will help to offset the loss of a large account in 2008.

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.