Weiss Ratings News

JUPITER, Fla., January 20, 2004 — The nation's HMOs recorded a $2.3 billion profit for the first three months of 2003, representing an $854 million, or 60 percent, increase over the $1.4 billion earned during the first quarter of 2002, according to Weiss Ratings, Inc., the nation's leading independent provider of ratings and analyses of financial services companies, mutual funds, and stocks.

Company	Headquarters	Weiss Safety Rating	Net Income (Loss)
Company	Headquarters	Weiss Safety Rating	1^st Qtr 2003 ($Mil)	1^st Qtr 2002 ($Mil)	$ Change
Aetna Health Inc. (a Florida Corp.)	Tampa, Fla.	C-	61.4	5.3	56.1
Pacificare of Calif. Inc.	Cypress, Calif.	C-	38.3	-8.7	47.1
Health Ins. Plan of Greater N.Y.	New York, N.Y.	B+	81.1	35.3	45.8
Blue Cross Blue Shield of N.C.	Chapel Hill, N.C.	B	44.2	8.3	35.9
Aetna Health of Calif. Inc.	San Ramon, Calif.	C	21.0	-11.9	32.9

"HMOs continue to thrive as a result of ongoing premium increases and effective cost-cutting measures," said Melissa Gannon, vice president of Weiss Ratings, Inc. "However, the boundless rate hikes, which helped the industry regain its strength the past several years, will eventually wane, giving consumers some much needed relief."

In analyzing the industry's first-quarter profitability, Weiss found that the number of HMOs earning a profit climbed to 80.2 percent in 2003 from 61.6 percent in 2001. The improved performance was evident across all HMO size categories, as illustrated by the following table:

Membership (# of individuals)	# of HMOs 1^st Qtr 2003	HMOs Reporting Profits 1^st Qtr 2003	# of HMOs 1^st Qtr 2001	HMOs Reporting Profits 1^st Qtr 2001
Fewer than 100,000	318	73.9%	355	56.3%
100,000 to 250,000	114	86.8%	114	66.7%
250,000 to 500,000	56	94.7%	43	74.4%
500,000 or More	51	88.2%	51	76.5%
Total	539	80.2%	563	61.6%

Of the 451 HMOs reviewed by Weiss using first-quarter 2003 data, 27 companies were upgraded, while none were downgraded. Notable upgrades include:

The Weiss Safety Ratings are based on an analysis of a company's risk-adjusted capital, five-year historical profitability, quality of investments, liquidity, and stability. The latter category combines a series of factors including asset growth, premium growth, strength of affiliate companies, and risk diversification.

Weiss issues safety ratings on more than 15,000 financial institutions, including insurance companies, banks, and brokerage firms. Weiss also rates the risk-adjusted performance of more than 12,000 mutual funds and more than 8,000 stocks. Weiss Ratings is the only major rating agency that receives no direct or indirect compensation from the companies it rates for issuing its ratings. Revenues are derived strictly from sales of its products to consumers, institutions, businesses, libraries, and governmental agencies.

Consumers needing more information on the financial safety of a specific company can purchase a rating and summary analysis for as little as $7.95 through www.WeissRatings.com, or starting at $15 by calling 800-289-9222.