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MAMSI RESPONDS TO DOWNTURN IN HMO STOCKS

 ROCKVILLE, Md., Feb. 16 /PRNewswire/ -- Mid Atlantic Medical Services, Inc. (MAMSI) (NASDAQ: MAMS) Chairman George T. Jochum this morning commented on the severe downturn in HMO stocks.
 Said Mr. Jochum, "We are aware of the increasing emphasis on HMOs' operating margins, driven by the prospect of some form of managed competition that might erode these margins. Despite this increased emphasis, I feel confident that MAMSI is in a unique position to respond to President Clinton's view that insurers should make a little money on a lot of people, not a lot of money on a few people.
 "We have always operated in that mode," continued Mr. Jochum. "We have operated our managed care business with the future in mind. Our operating margins are low by design -- 2.3 percent in 1992. As the low- cost producer in our service area, we have always priced our products to attract large membership growth. Also, MAMSI has achieved administrative cost levels far below those of the industry. In fact, we ended 1992 with just a 7.5 percent administrative cost ratio, and we believe that number can be lowered even further."
 Mr. Jochum concluded by saying, "The managed care business evolved to fill a need to control health care cost inflation. MAMSI has, since its inception, embraced that concept. Our low margins, low administrative costs, low premiums, and large membership base put MAMSI in a unique position to benefit from the administration's proposed health care policies."
 -0- 2/16/93
 /CONTACT: Michael Savage of MAMSI, 301-294-5083/
 (MAMS)


CO: Mid Atlantic Medical Services, Inc. ST: Maryland IN: INS SU:

SH-LR -- NY105 -- 6865 02/16/93 14:26 EST
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Publication:PR Newswire
Date:Feb 16, 1993
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