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FOR IMMEDIATE RELEASE
OLDWICK - MAY 28, 2015 03:32 PM (EDT)
A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit rating of "bbb+" of Baptist Health Plan, Inc. (formerly Bluegrass Family Health, Inc.) (Baptist Health) (Lexington, KY). The outlook for both ratings is stable. Concurrently, A.M. Best has withdrawn the ratings in response to the company's request to no longer participate in A.M. Best's interactive rating process.
The affirmation of the ratings of Baptist Health reflects the company's high level of integration with its ultimate parent, Baptist Healthcare System, Inc. Baptist Health plays an integral role in the organization's integrated delivery system and is of strategic importance as the organization transitions toward a population management model. Part of this transition included the recent name change to Baptist Health Plan, Inc. from Bluegrass Family Health, Inc. Additionally, A.M. Best expects that Baptist Health will begin to offer products that are closely aligned with its affiliates, as well as to grow into new markets. Although near-term operating results have been unfavorable, Baptist Health has more than sufficient risk-adjusted capital for its current business level.
Offsetting rating factors include declines in Baptist Health's top line premium revenue, lack of business segment diversity and a diminished business profile. Currently, the majority of Baptist Health's business is commercial group, which has been contracting for the company due to competitive market pressure. A.M. Best anticipates that premium revenue will continue to decline as the company transitions its products and market segment offerings in the medium term. This final rating does not contemplate future changes in the financial condition, strategic direction or the level of support received from its parent health system.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology .
Key insurance criteria reports utilized:
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's Ratings & Criteria Center.
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