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: RIT) has been notified that A.M. Best Company has affirmed its initial "A-" (Excellent) rating of Blue Cross and Blue Shield 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 Missouri, Inc. (BlueCHOICE), through which RightCHOICE operates its Alliance preferred provider organization (PPO), AllianceChoice point-of-service (POS) 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 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 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