RightCHOICE notified of A.M. Best's affirmation of "A-" rating of Blue Cross and Blue Shield of Missouri.ST. LOUIS--(BW HealthWire)--May 19, 1997--
Rating Reflects Strong Market Position and
Improving Managed Care Infrastructure
RightCHOICE Managed Care, Inc. (NYSE NYSE
See: New York Stock Exchange : RIT RIT,
n See therapy, regenerative injection. ) has been notified that A.M. Best Company has affirmed its initial "A-" (Excellent) rating of Blue Cross and Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. of Missouri (BCBSMo).
BCBSMo is controlling shareholder of RightCHOICE, which owns and operates BCBSMo's managed care business.
A.M. Best also affirmed the "A-" (Excellent) ratings of RightCHOICE'S two managed care subsidiaries, Healthy Alliance Life Insurance Co. and HMO HMO health maintenance organization.
A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, Missouri, Inc. (BlueCHOICE), through which RightCHOICE operates its Alliance preferred provider organization pre·ferred provider organization
Abbr. PPO A medical insurance plan in which members receive more coverage if they choose health care providers approved by or affiliated with the plan. (PPO PPO
preferred provider organization
PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there ), AllianceChoice point-of-service (POS (1) See point of sale and packet over SONET.
(2) "Parent over shoulder." See digispeak.
POS - point of sale ) and BlueCHOICE health maintenance organization (HMO) programs.
"We're pleased that A.M. Best recognizes the strategic value of the portfolio of managed care products we deliver to our members and markets," stated John A. O'Rourke, chairman, president and chief executive officer of RightCHOICE.
According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. A.M. Best, the ratings reflect "the strong local market position maintained by the organization and its subsidiaries. It also reflects the organization's improving managed care infrastructure and good capitalization, coupled with its access (through RightCHOICE) to the capital markets." RightCHOICE itself was not rated because it is an insurance holding company rather than an insurance or health care benefits financing company.
In making its announcement, A.M. Best noted:
-- The combined organization's success can be attributed to its diverse customer base, broad managed care product line and vast, effective delivery networks.
-- Membership in the consolidated organization has grown dramatically due to the acquisition of HealthLink, Inc., RightCHOICE's network rental and utilization management Utilization management is the evaluation of the appropriateness, medical need and efficiency of health care services procedures and facilities according to established criteria or guidelines and under the provisions of an applicable health benefits plan. subsidiary.
-- HealthLink, as well as the organization's product offerings, will contribute to the continued growth of the organization.
While noting "recent declines in consolidated earnings and the competitive pressure the organization is likely to face in penetrating its target markets," A.M. Best also noted that "potential operating efficiencies, combined with enhanced medical cost-management initiatives already in place, should enable the organization to offer more attractive and competitive products and improve earnings. Strategies being developed should enhance the organization's competitive position and profitability, as well as improve relations with regulators and customers."
A.M. Best assigned an initial "B++" (Very Good) rating to RightCHOICE Insurance Co., Inc., which markets RightCHOICE products outside Missouri.
A.M. Best Company, established in 1899, is America's oldest and most widely recognized insurance rating and information source.
RightCHOICE Managed Care, Inc., the publicly held subsidiary of Blue Cross and Blue Shield of Missouri, is the largest provider of managed care services in Missouri, covering approximately 1.9 million members.
CONTACT: Clara Webb Kinner, 314/923-6268
Sandra Van Trease, 314/923-4828