TRUMBULL, Conn., Aug. 26 /PRNewswire-FirstCall/ -- Oxford Health Plans,
Inc. (NYSE: OHP) today announced that it has reached an agreement in principle
to settle its pending lawsuit against certain of the excess insurance carriers
who provided insurance coverage in connection with the previously settled 1997
securities class action against the Company. As previously disclosed, in 1999
the Company purchased a $200 million excess insurance policy. In connection
with the previously announced $225 million settlement of the securities class
action, the Company recovered $25 million from the first level excess
insurance carrier and had remaining claims of approximately $41.8 million
against the other excess insurance carriers. The Company has agreed in
principle with certain of the excess insurance carriers to settle
approximately $17.9 million of these claims for a total of approximately
$14.3 million, which will be reflected in income for the third quarter ending
September 30, 2003. The agreement is subject to final documentation. The
Company has a remaining claim of approximately $23.9 million against one
excess insurance carrier. The Company intends to vigorously pursue recovery
of this outstanding amount.
About Oxford
Founded in 1984, Oxford Health Plans, Inc. provides health plans to
employers and individuals primarily in New York, New Jersey and Connecticut,
through its direct sales force, independent insurance agents and brokers.
Oxford's services include traditional health maintenance organizations,
point-of-service plans, Medicare plans and third party administration of
employer-funded benefits plans. More information about Oxford Health Plans,
Inc. is available at http://www.oxfordhealth.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release, including statements concerning
the settlement of the Company's claims against certain excess insurance
carriers and other statements contained herein regarding matters that are not
historical facts, are forward-looking statements as defined in the Securities
Exchange Act of 1934; and because such statements involve risks and
uncertainties, actual results may differ materially from those expressed or
implied by such forward-looking statements. Factors that could cause actual
results to differ materially include, but are not limited to:
-- Changes in federal or state regulation relating to health care and
health benefit plans, including proposed patient protection legislation
and mandated benefits.
-- The state of the economy.
-- Rising medical costs or higher utilization of medical services,
including higher out-of-network utilization under point-of-service
plans and new drugs and technologies.
-- Competitive pressure on the pricing of the Company's products,
including acceptance of premium rate increases by the Company's
commercial groups.
-- Higher than expected administrative costs in operating the Company's
business and the cost and impact on service of changing technologies.
-- The ability of the Company to maintain risk transfer, risk sharing,
incentive and other provider arrangements and the resolution of
existing and future disputes over the reconciliations and performance
under such arrangements.
-- Any changes in the Company's estimates of its medical costs and
expected cost trends.
-- The impact of future developments in various litigation including the
periodic examination, investigation and review of the Company by
various federal and state authorities.
-- The Company's ability to renew existing members and attract new
members.
-- The Company's ability to develop processes and systems to support its
operations and any future growth and administer new health care benefit
designs.
-- Any future acts or threats of terrorism or war.
-- Those factors included in the discussion under the caption "Cautionary
Statement Regarding Forward-Looking Statements" in Part I, Item 1, of
the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2002, and Part I, Item 2, of the Company's Quarterly
Reports on Form 10-Q for the quarterly periods ended March 31, 2003 and
June 30, 2003.
SOURCE Oxford Health Plans, Inc.
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Related links:
http://www.oxfordhealth.com
CONTACT:
Investor, Gary Frazier, +1-203-459-7331, or
gfrazier@oxfordhealth.com, or Jon Green, +1-203-459-6674, or
jgreen@oxfordhealth.com, or Media, Maria Gordon Shydlo,
+1-203-459-7674, or mshydlo@oxfordhealth.com, all of Oxford
Health Plans, Inc.
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