December 6, 2002

The Michigan Office of Financial and Insurance Services (OFIS) has posted the available 3rd quarter financial statements for health maintenance organizations (HMOs) on the web at www.michigan.gov/ofis. The industry continues to report a year-to-date profit as of the third quarter.

“HMO financial performance is continuing in a positive direction showing an improvement in financial strength,” said OFIS Commissioner Frank M. Fitzgerald. “It is important to note that Michigan consumers can now view complete HMO financial statements online or request the information toll free at (877) 999-6442.”

Michigan HMOs reported a year-to-date profit as of September 30, 2002 of $60.7 million (not including Omnicare and Ultimed) with $23.2 million of the year-to-date profit generated in the third quarter of 2002. Omnicare was not included in the above industry figure because of significant extraordinary adjustments made by Omnicare as a result of the court approved rehabilitation plan. Omnicare reported a year-to-date net profit of $33.7 million. This is a difference of $32 million from second quarter results and reflects a $2.1 million positive adjustment on premium income and $30 million reduction to medical expenses that also has a positive impact on the company’s net profit.

Ultimed’s operating results were not included in the industry figure because Ultimed failed to file its third quarter financial statement by the required deadline.

The following summarizes the year-to-date operating results by line of business:

Direct links: The 2001 Year End, 2002 1st, 2nd & 3rd Quarter HMO financial statements are available at http://www.michigan.gov/cis/0,1607,7-154-10555_12902_18956---,00.html. HMO financial statistics and analysis for 2000 – 2002 1st quarter is available at http://www.michigan.gov/cis/0,1607,7-154-10555_13222_13224-35889--,00.html. Annual and Quarterly reports for Michigan HMO's are available at http://www.michigan.gov/cis/0,1607,7-154-10555_12902_18956---,00.html.

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The Michigan Office of Financial and Insurance Services (OFIS) is responsible for the regulation of Blue Cross Blue Shield, 29 HMOs, 138 banks, 280 credit unions, almost 1,500 insurance companies, 1,583 investment advisers, 2,164 securities broker-dealers, 6,000 consumer finance lenders, 89,000 insurance agents, and 120,715 securities agents. OFIS is part of the Department of Consumer and Industry Services and is primarily fee-funded, requiring minimal public tax dollars for its regulatory and consumer assistance activities. OFIS has insurance, financial institutions and securities information available online at the OFIS web site, www.michigan.gov/ofis, or at the Michigan government home page, www.michigan.gov. All information is also available through the OFIS toll free number, (877) 999-6442. If you would like to receive OFIS press releases electronically, please email ofis-info@michigan.gov.