A.M. Best Assigns Initial Financial Strength Rating to Care Choices HMO

OLDWICK, N.J., June 20, 2003 — A.M. Best Co. has assigned an initial financial strength rating of B+ (Very Good) to Care Choices HMO (Farmington Hills, MI). The rating outlook is stable.

Care Choices HMO is a wholly-owned subsidiary of Trinity Health (Novi, MI), the nation’s fourth-largest Catholic health system, with a strong balance sheet and stable earnings history. Trinity Health’s explicit financial, strategic and operational support is the key driver for Care Choices’ secure financial strength rating.

Care Choices has recently refocused its business profile. The health plan has exited multiple unprofitable businesses (i.e., Medicare+Choice, Medicaid and the western Michigan commercial group HMO market) to focus its effort on profitable customer segments and geographic markets that leverage Trinity Health’s delivery system more effectively. As a result, Care Choices has begun to generate earnings—as opposed to historical net losses—and strengthen its modest stand-alone capitalization. A.M. Best believes this positive trend could continue and grow modestly during the medium term.

Furthermore, Care Choices has demonstrated its commitment to quality health care outcomes for its members through its well-developed disease and medical management programs. In A.M. Best’s opinion, Care Choices’ quality care focus is a strategic differentiator from its competition and strong value proposition for its subscribers.

A.M. Best Co., established in 1899, is the world’s oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best’s website at www.ambest.com.