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MID ATLANTIC MEDICAL SERVICES, INC. RESUMES MARKETING OF HMO TO MARYLAND MEDICAID RECIPIENTS

 ROCKVILLE, Md., Nov. 15 /PRNewswire/ -- George T. Jochum, Chairman, President and CEO of Mid Atlantic Medical Services, Inc. (MAMSI) (NASDAQ-NMS: MAMS) today announced that the Company has received the go-ahead from the Maryland Department of Health and Mental Hygiene to immediately resume market its Optimum Choice, Inc. (OCI) HMO to the State's Medicaid recipients in Baltimore City and 10 Maryland counties.
 Commented Mr. Jochum, "Since Oct. 22, when we voluntarily halted our Medicaid marketing program, we've been meeting with State representatives to develop a suitable solution to the State's concerns, which centered on providing mental health services to Medicaid recipients living in certain rural Maryland counties. The State is now satisfied that we have the situation well in hand, and all issues have been resolved to our mutual satisfaction."
 Mr. Jochum continued, "The concern arose when a handful of OCI's 7,500 Medicaid members believed they could continue seeing the same doctors they had used before enrolling in OCI. This is not the case, however, as OCI enrollees must use our providers for both primary and specialty care services, such as mental health care."
 Richard K. Slater, MAMSI's Executive VP of Marketing, further explained that, "One of the first steps we took to rectify this situation was to re-train our Medicaid marketing reps to eliminate the chance of future misunderstandings of this nature. We've also revised the marketing materials they provide to potential Medicaid members."
 Added Thomas P. Barbera, MAMSI's Executive VP of Regulatory Affairs, "OCI, with approximately 150,000 small group members, is the first HMO in Maryland to endeavor to provide managed care for Medicaid patients in rural areas. We're just finding our what's normal (in terms of provider count) for such areas. We continue to work with the State in order to enhance our already wholesome provider network."
 Concluded Mr. Jochum, "We are pleased that together, MAMSI and the State of Maryland have been able to resolve these issues. As with any new product or endeavor, there are always situations that cannot be anticipated. We look forward to a long-term relationship with the Department of Health and Mental Hygiene and our Medicaid members."
 MAMSI is a regional holding company for health care organizations which provide comprehensive health insurance products. Products include: M.D. IPA, a traditional HMO, and M.D. IPA Preferred, an open- ended version of the HMO; Optimum Choice, Inc. a non-federally qualified HMO; MAMSOVA, a non-federally qualified Virginia HMO; Alliance PPO, Inc., a preferred provider organization; MAPSI, a preferred provider organization and MAPSI Plus, both offering managed psychiatric health care services; MAMSI Life and Health Insurance Company, an indemnity insurance company that plans to develop and market a variety of managed care insurance products; and National Managed Care, Inc., a national network of regionally-dominant, independent HMOs.
 Mid Atlantic Medical Services, Inc. securities are registered with the Securities and Exchange Commission and are traded on the NASDAQ National Market System (NASDAQ: MAMS).
 -0- 11/15/93
 /CONTACT: Michael Savage of Mid Atlantic Medical Services, 301-294-5083/
 (MAMS)


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

SH-JG -- NY036 -- 4275 11/15/93 09:45 EST
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Publication:PR Newswire
Date:Nov 15, 1993
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