A.M. Best Withdraws Ratings of Gateway Health Plan, Inc.

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating (FSR) of B- (Fair) and
issuer credit rating (ICR) of "bb-" of Gateway Health Plan, Inc. (GHPI). The
outlook for both ratings is negative.

Concurrently, A.M. Best has withdrawn the ratings at the company`s request and
assigned a category NR-4 to the FSR and "nr" to the ICR. These rating actions
reflect the decision of GHPI`s management to withdraw from A.M. Best`s
interactive rating process.

Over the past five years, GHPI`s risk-based capital has not grown at the rate
required to support the company`s strong revenue development. Generally,
underwriting performance was unfavorable for four out of the past five years,
which suggests that reimbursement rates have not kept up with the level of
increased utilization and the commitments required to support the company`s
administrative infrastructure development.

A.M. Best is concerned about Pennsylvania`s perennial budget deficits and the
level of service cuts that the state is required to make in order to bring into
balance the state`s cash flow. Additionally, the state`s economy continues to
shed jobs. The increases in unemployment and retirements are in direct
proportion to increase enrollment in Medicaid and Medicare, adding significant
pressure to the operations of GHPI. For these reasons, A.M. Best believes that
GHPI is subject to significant geographic and legislative risks.

For Best`s Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
at www.ambest.com/ratings/methodology.

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
David Mitchell, 908-439-2200, ext. 5556
david.mitchell@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 2009