A.M. Best Assigns Ratings to MVP Health Plan of New Hampshire Inc.

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has assigned a financial strength rating (FSR) of B+
(Good) and an issuer credit rating (ICR) of "bbb-" to MVP Health Plan
of New Hampshire Inc (Bedford, NH). A.M. Best also has affirmed the
FSR of B+ (Good) and assigned ICRs of "bbb-" to MVP Health Plan, MVP
Health Insurance Company (d/b/a MVP Health Care) (both of Schenectady,
NY) and Rochester Area Health Maintenance Organization (d/b/a
Preferred Care) (Rochester, NY). The outlook for all ratings is
stable.

These ratings reflect MVP Health Care/Preferred Care's strong
operating performance, well established regional presence and sound
growth strategies. Since their merger in January 2006, MVP Health
Care/Preferred Care has continued to have favorable operating results
driven by its commercial and Medicare managed care products. MVP
Health Care/Preferred Care's growth strategy includes introduction of
new co-branded products including plans that offer benefit choices at
the individual employee level and built in wellness tools and
geographic expansion of current product offering. The organization
also formed a strategic alliance with CIGNA HealthCare in 2007 to
offer a cost competitive national network solution to national
employers with a presence in the MVP Health Care/Preferred Care market
area.

Offsetting rating factors include concentration of earnings in the
government sector, declining enrollment and competition from large
national providers and local BlueCross Blue Shield plans. The
favorable operating results of MVP Health Care/Preferred Care's
Medicare Advantage products could be pressured in the future due to
the funding uncertainty around this government program. MVP Health
Care/Preferred Care has experienced a commercial enrollment decline
due to pricing and competitive pressures in the health care market.
This decline is not expected to continue and initiatives taken by the
organization including: geographic expansion, new product development
and plans to speed enrollment and reduce cost through sales force
automation, should result in enrollment growth in the medium term.
Competition in the MVP Health Care/Preferred Care's service area is
expected to remain strong, with large national insurers, Blue Cross
Blue Shield plans and local plans all vying for business.

For current Best's Ratings, independent data and analysis on more
than 1,050 health companies and A.M. Best groups, please visit
www.ambest.com/health.

Founded in 1899, A.M. Best Company is a global full-service credit
rating organization dedicated to serving the financial and health care
service industries, including insurance companies, banks, hospitals
and health care system providers. For more information, visit
www.ambest.com.

A.M. Best Co.
Analysts
Bridget Maehr, 908-439-2200, ext. 5321
bridget.maehr@ambest.com
or
Sally Rosen-908-439-2200, ext. 5280
sally.rosen@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2008