FOR IMMEDIATE RELEASE	FOR MORE INFORMATION:
Monday, July 24, 2000	Diane Landry King (301) 838-5636

MAMSI Announces New Payment For West Virginia Physicians

Charleston, West Virginia - Mid Atlantic Medical Services, Inc. (MAMSI) (NYSE: MME) announced today that effective August 1, 2000, all West Virginia physicians participating with its health plans will be reimbursed on a fee-for-service basis. West Virginia physicians requested this change.

Under capitation, Primary Care Physicians (PCPs) receive a fixed, monthly fee for each member assigned to the PCP's panel. The PCP receives the same reimbursement irrespective of the intensity or complexity of the services provided to health plan members. By contrast, under fee-for-service a physician is paid for the health care services given to a patient. The fee varies with the intensity and complexity of the actual service.

Over 2,400 practitioners participate with MAMSI's health plans in West Virginia. The Company's health plans in West Virginia are MAMSI Life and Health Insurance Company (MLH), Optimum Choice Inc. (OCI) and Alliance PPO, LLC.

"This change will help us retain and attract more physicians," said Derry Mount, MAMSI's General Manager of West Virginia. "By strengthening our partnership with West Virginia physicians, our members will have access to a larger network and have a greater opportunity to select a physician who best meets their needs."

Mid Atlantic Medical Services, Inc.'s health care subsidiaries cover approximately 1.8 million lives in North Carolina, Maryland, Virginia, Pennsylvania, Delaware, West Virginia and Washington, D.C. The Company's Internet address is www.mamsi.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.