PAC RIM AND METRACOMP: ADVANCES IN WORKERS' COMP MANAGED CARE.

WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Oct. 4, 1996--The Pacific Rim Assurance Company (PAC RIM) and MetraComp(SM) Inc. have joined forces to offer California employers one of the most progressive forms of managed care for workers' compensation available today. PAC RIM has just rolled out MetraComp's dual HCOs (Health Care Organizations) to its customers.

"Although HCOs have been around since 1994, most insurance carriers haven't offered them for several reasons," said Ron Tonani, senior vice president for PAC RIM. "In the beginning, there were only three state-certified HCOs available, and they weren't all available on a statewide basis. There is also the requirement that the carrier provide two distinct HCO offerings to California employers."

MetraComp overcame these obstacles earlier this year when it became the first workers' compensation managed care company to have two different state-certified HCOs. The original MetraComp HCO Select, a gatekeeper model, features utilization management services, telephonic and field case management, and prospective and concurrent medical management. Its second option, MetraComp HCO Choice, is a free-choice network. Workers can go to any treating physician within the network, without a referral from a gatekeeper physician. Cost savings resulting from using a tightly organized managed care system are one of the advantages of an HCO, but just as important is the employer's ability to direct care.

"The HCO strengthens an employers ability to manage the treatment program," said Tonani. "Without an HCO, employers can direct care for only 30 days. By using an HCO employers can retain medical control for 90, 180, and even 365 days after report of the injury if certain requirements are met."

PAC RIM was one of the first carriers to provide a true managed care workers' compensation program in the state. MetraComp's HCOs strengthened its offerings.

MetraComp is a United HealthCare company. United HealthCare is a national leader in health care management, serving purchasers, consumers, managers and providers of health care since 1974.

The Pacific Rim Assurance Company is a subsidiary of Pac Rim Holding Corporation (NASDAQ: "PRIM"). Founded in 1987 and based in Woodland Hills, California, the company currently writes workers' compensation policies throughout California, Arizona, Texas and Georgia. Estimate annual premium in force as of June 30, 1996 is approximately $80.3 million.

CONTACT: Media Contact:

Helen Knight, APR [phone]