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PACIFICARE HEALTH SYSTEMS RECEIVES NOTICE OF 1994 MEDICARE RATE INCREASE

 CYPRESS, Calif., Sept. 8 /PRNewswire/ -- PacifiCare Health Systems Inc. (NASDAQ: PHSYA, PHSYB) said it has received notice from the Health Care Financing Administration (HCFA) that it will receive an average premium rate increase of approximately 2.5 percent for its Medicare risk program, Secure Horizons, effective Jan. 1, 1994. Individual state rate increases range from approximately 0.6 percent in the company's Oregon market to approximately 6.8 percent in its Texas market based on the demographic mix of the membership in those markets. The company's Medicare business accounts for approximately 52 percent of total premium revenue.
 Commenting on the rate increase, Alan Hoops, president and chief executive officer, said, "We are disappointed that next year's rate increase will be lower than previously announced by HCFA. However, the impact of a lower than expected rate increase will be mitigated by the fact that approximately 70 percent of our Medicare costs are capitated on a percentage of premium basis. Additionally, we will continue to explore other avenues to control cost and lessen the remainder of the impact.
 "Our Secure Horizons Medicare program, which has been one of the fastest growing in the nation for the past two years, is an important part of our portfolio of businesses and is expected to continue to grow at a brisk pace," Hoops continued. "We continue to be committed to providing affordable, quality health care to Medicare beneficiaries."
 PacifiCare Health Systems is one of the nation's leading managed health care organizations. Primary operations include managed care products for employer groups and Medicare beneficiaries in California, Oklahoma, Oregon, Texas and Washington, serving more than 1 million members. Other specialty managed care operations include Medicare risk management services, pharmacy benefit management, military health care management, coordination of managed care products for multiregion employers, health and life insurance, behavioral health, workers' compensation, health promotion and utilization review.
 -0- 9/8/93
 /CONTACT: David K. Erickson, investor relations, 714-229-2636; or Debby Iacunato, media relations, 714-220-3745/
 (PHSYA PHSYB)


CO: PacifiCare Health Systems Inc. ST: California IN: HEA SU:

MF-JL -- LA015 -- 9600 09/08/93 07:45 EDT
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Publication:PR Newswire
Date:Sep 8, 1993
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