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| FOR IMMEDIATE RELEASE | FOR MORE INFORMATION: |
| Thursday, March 30, 2000 |
Diane Landry
King (301) 838-5636 |
TRIGON TO ASSUME MAMSI’S VIRGINIA MEDICAID BUSINESS
RICHMOND,
VA - Mid Atlantic Medical Services, Inc. (MAMSI) and Trigon Healthcare Inc.
(TGH) announced today that the two companies have agreed to transfer MAMSI's
Virginia Medicaid business to Trigon’s three affiliated HMOs. The transfer was
approved by the Virginia Department of Medical Assistance Services (DMAS) on
March 13, 2000.
Effective May 1, 2000, approximately 13,000 Medicaid members enrolled in Optimum Choice Inc. ® (OCI), one of MAMSI’s subsidiaries, will be enrolled in the Trigon HealthKeepers Plus product. This product is offered by Trigon's HMO affiliates HealthKeepers Inc., Peninsula Health Care Inc. and Priority Health Care Inc.
"When we decided to exit from the Virginia Medicaid Program, we wanted to make sure that our Medicaid members would have a seamless transition to a new health maintenance organization as well as continuity of care," said Mark D. Groban, M.D., chairman of the board of MAMSI. "The transfer of our Medicaid members to Trigon will accomplish this goal."
"We are pleased to welcome these new members to our network and confirm our commitment to the Medicaid program," said Thomas G. Snead Jr., Trigon president and CEO.
HealthKeepers Inc., Peninsula Health Care Inc. and Priority Health Care Inc. currently contract with DMAS to provide health maintenance organization services to Virginians enrolled in the Medicaid Program and the Children's Medical Security Insurance Program (CMSIP). Collectively, the three HMOs have approximately 50,000 Medicaid members. The additional members will give the Trigon-affiliated HMOs one of the largest Medicaid enrollments in the state.
"The Trigon HealthKeepers Plus product will provide continuity of quality health benefits for these members," Snead continued. "Because our provider networks are similar, we can administer health care benefits with little disruption in coverage."
The Trigon affiliated HMOs are working with OCI and DMAS to ensure a smooth transition for these members. Transferred members will receive a welcome kit, and Trigon HealthKeepers Plus outreach representatives will be available to provide them with a new member orientation. Once enrolled, members will have access to all Trigon HealthKeepers Plus benefits, including a large physician network, special programs for expectant women and infants and a 24-hour nurse line.
Medicaid is a health insurance program that serves approximately 36 million disadvantaged people nationwide.
MAMSI, one of the region's largest managed care companies, offers a range of products through its health plan subsidiaries. MAMSI’s health plans currently cover about 1.8 million lives in Maryland, Virginia, the District of Columbia, Delaware, Pennsylvania, West Virginia and North Carolina. Visit MAMSI on the Web at www.mamsi.com.
Trigon is Virginia’s largest managed health care company, providing a broad range of health, wellness and health care financing programs and services to nearly 2 million members. Visit Trigon on the Web at www.trigon.com.
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Note 1: Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: All forward-looking information or statements contained in this release are based on management’s current knowledge of factors, all with inherent risks and uncertainties, affecting MAMSI’s business. MAMSI’s actual results may differ materially if these assumptions prove invalid. Significant risk factors, while not all-inclusive, are: the possibility of increasing price competition in the Company’s marketplace; the possibility of state or Federal budget mandates that reduce premium levels; the possibility of increased medical expenses due to increased utilization, inflation or legislative mandates; and the possibility that the Company is not able to expand its Service Area as planned. Investors should review other risks and uncertainties contained in Company documents filed with the Securities and Exchange Commission.
Note 2: MAMSI is a regional holding Company for health care organizations that provide comprehensive health insurance products and services including: M.D. IPA, a traditional HMO, and M.D. IPA Preferred, an open-ended version of the HMO; Optimum Choice, Inc.®, a non-federally qualified HMO; Optimum Choice of the Carolinas, Inc.; Optimum Choice, Inc. of Pennsylvania; Alliance PPO, LLC, a preferred provider organization; Mid Atlantic Psychiatric Services, Inc., a preferred provider organization offering managed psychiatric health care services; MAMSI Life and Health Insurance Company, an indemnity insurance company; HomeCall, Inc. and FirstCall, Inc., home health care companies; and HomeCall Pharmaceutical Services, Inc., a pharmacy and home infusion services company.
Note 3: Mid Atlantic Medical Services, Inc. common stock is traded on the New York Stock Exchange (NYSE-MME).
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