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John Alden and Community Care Network announce plan to offer HMO in California.

MIAMI--(BUSINESS WIRE)--March 3, 1995--John Alden Financial Corporation (NYSE:JA) and Community Care Network (CCN), a Value Health Company (NYSE:VH), announced today that John Alden Financial Corporation's principal subsidiary, John Alden Life Insurance Company, has signed an agreement to market CCN's Value HealthPlan of California, a proposed new health maintenance organization (HMO).

Value HealthPlan, owned and operated by CCN, signals Value Health's entry into the HMO market. John Alden will market the new HMO to employers with less than 100 employees in California. A second carrier, Northwestern National Life Insurance Co., will market Value HealthPlan to larger employer groups.

"This agreement gives us an added marketing presence in an area that we are targeting for market share enhancement," said John Alden, Chairman and Chief Executive Officer Glendon E. Johnson. "CCN has an excellent reputation in California, and Value Health is a strong player in the field of managed care. We are period to join them in marketing this new HMO."

CCN President and Chief Executive Officer James E. Buncher said CCN will build on its strong market presence and solid provider relations in California by adding an HMO to its array of managed care options.

"As the market evolves toward the more intensive management of care, we want to be able offer an HMO option to our customers," he said. "These arrangements with John Alden and Northwestern National Life Insurance Company team their marketing and sales capabilities with CCN's managed care resources to create a synergy that doesn't exist in the marketplace. It's a new and exciting approach."

CCN expects Value Health Plan to begin operating in Southern California in early 1996, pending regulatory approval. Initially, the HMO's service area will cover San Diego, Orange, Los Angeles, Riverside and San Bernardino counties, with expansion planned to additional service areas in Southern and Northern California.

John Alden insures more than 200,000 employer groups nationwide, the majority of which are 10 members or less. In California, the company insures more than 15,000 groups. CCN managed care systems are used by approximately 1.4 million members under group health plans and 13 million employees under workers' compensation plans nationwide. Its California preferred provider organization and point-of-service networks include 22,300 physicians, 285 hospitals and 4,447 other providers.

John Alden Financial Corporation is an insurance holding company that, through its subsidiaries, is principally engaged in providing group life and health insurance and managed care services. John Alden is one of the largest providers of group insurance in this market. The company also markets annuities, life insurance to individuals, credit life and health insurance, extended service contracts and other health-related risk management services and products.

San Diego-based CCN, a wholly-owned subsidiary of Value Health Inc., is a national healthcare management company that develops and operates integrated managed care systems for group health and workers' compensation payors in 37 states. CCN's managed care systems, together with utilization management and disability management services, reach more than 14 million beneficiaries.

Value Health, based in Avon, Conn., is a leading provider of speciality managed care benefit programs and healthcare information services to more than 64 million people. Its customers include 58 of the nation's 250 largest corporations.

CONTACT: John Alden Corporation

Syed Ali, John Alden, 305/715-3767



Terry Merryman, 619/654-2202
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Publication:Business Wire
Date:Mar 3, 1995
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