Coventry Health Care Amends Agreement With Principal Life.BETHESDA, Md.--(BW HealthWire)--May 19, 1999-- Coventry Health Care Coventry Health Care, Inc. (Coventry) (NYSE: CVH) is a managed health care company in the United States. On February 8th of 2007 Coventry agreed to acquire Concentra's Workers Compensation Managed Care Services Businesses. External links
tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. and renew Principal Life's health insurance indemnity business located in Coventry's service area. Coventry will receive $20 million in cash in exchange for waiving these rights. This transaction is expected to close on or about June 1, 1999. The amendment has no impact on the Company's existing management services agreement with Principal Life. On April 1, 1998, Coventry Health Care entered into an agreement, as part of the Company's merger with Principal Health Care, to manage that portion of Principal Life's health insurance indemnity business located in Coventry's markets through December 31, 1999. After that time, Coventry would reinsure and renew the business on the books of its subsidiary, Coventry Health and Life Insurance Company. "We decided that fully integrating this book of indemnity business did not fit with Coventry's long-term strategic plan," said Dale B. Wolf, chief financial officer of Coventry. "Reinsuring Principal Life's indemnity business would have required us to diffuse our focus and divert available capital from our core managed care business." Coventry Health Care is a managed health care company operating health plans under the names Principal Health Care, HealthAmerica, HealthAssurance, HealthCare USA, Group Health Plan and Southern Health. The Company provides a full range of managed care products and services including 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, , PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there , POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale , Medicare Risk and Medicaid to 1.4 million members in a broad cross-section of employer and government-funded groups in 15 markets throughout the Midwest, Mid-Atlantic and Southeast United States. More information on Coventry is available on the Internet at http://www.cvty.com. This press release contains forward-looking statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements relate to future events or future financial performance and may be significantly impacted by certain risks and uncertainties described herein and in the Company's Annual Report on Form 10-K for the year ended December 31, 1998, filed with the Securities and Exchange Commission. |
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