TRUMBULL, Conn., Sept. 19 /PRNewswire-FirstCall/ -- Oxford Health Plans,
Inc. (NYSE: OHP) announced today that its Board of Directors approved an
increase of $250 million to its existing share repurchase program through
December 31, 2003. This increase brings the Company's remaining repurchase
authority to $267 million, after giving effect to the $28 million of
repurchases completed to date in the third quarter of this year. The Company
expects to make open market purchases and purchases of shares in privately
negotiated transactions from time to time dependent on market conditions as
well as other considerations.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001212/OXHPLOGO )
"We continue to believe that an efficient use of our excess cash to
benefit shareholders is through share repurchases. Since the beginning of our
repurchase program in August of 2001, we have repurchased almost 16 million
common shares. We believe this current increase in repurchase authority
further demonstrates our views regarding the strength of Oxford's future
operating and cash flow prospects," said Oxford Health Plans' Chief Financial
Officer Kurt B. Thompson.
Founded in 1984, Oxford Health Plans, Inc., provides health plans to
employers and individuals 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, third-party administration of employer-funded benefit
plans and Medicare plans.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release, including statements concerning
the Company's future operating prospects, share repurchase program, 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.
* The impact of the September 11, 2001 terrorist attacks, subsequent
cases of anthrax infection or exposure, and any future acts of
terrorism or war.
* 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
pending class and derivative actions filed against the Company and
certain of its officers and directors, and other proceedings commenced
against the Company and several employees by certain healthcare
providers), class actions in Connecticut, New Jersey and New York and
related litigation by the Connecticut Attorney General, regulatory
proceedings and other governmental action (including the ongoing
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.
* Those factors included in the discussion under the caption
"Business -- Cautionary Statement Regarding Forward-Looking
Statements" in the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2001 and its Quarterly Reports on Form 10-Q
for the periods ended March 31, 2002 and June 30, 2002.
SOURCE Oxford Health Plans, Inc.
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Related links:
http://www.oxfordhealth.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20001212/OXHPLOGO
Company News On-Call:
http://www.prnewswire.com/comp/104612.html
CONTACT:
Investor - Gary Frazier, +1-203-459-7331, or
Media - Maria Gordon Shydlo, +1-203-459-7674, both of Oxford
Health Plans
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