TRUMBULL, Conn., Oct. 29 /PRNewswire-FirstCall/ -- Oxford Health Plans,
Inc. (NYSE: OHP) announced, in conjunction with this morning's earnings
release, projections for the remainder of 2002 and preliminary projections for
2003. The Company believes it will end 2002 with approximately 1.44 million
commercial members, an increase of approximately 5.3% over 2001. Oxford also
believes its full year 2002 medical loss ratio will be between 79% and 79.5%
and that its full year administrative loss ratio will be approximately 11.5%,
excluding its previously announced $151.3 million litigation charge. Oxford
also believes that its full year earnings will be approximately $2.50 to $2.55
per diluted share for 2002, including the effect of the items listed in
Exhibit 1 of this morning's earnings release.
Oxford also believes that its 2003 earnings will be between $3.90 and
$4.00 per diluted share, with approximately 3% year over year commercial
membership growth. Oxford believes its full year 2003 medical loss ratio will
be approximately 80% and its administrative loss ratio will be approximately
10.9%.
As previously announced, the Company will hold a conference call today,
October 29, 2002, at 10 a.m. (Eastern Time) to review these results as well as
discuss the outlook for the remainder of 2002 and 2003. The conference call
can be accessed by dialing 1-888-677-8170 (using the passcode "Oxford") at
least 10 minutes prior to the start of the call. A replay of the call will be
available from October 29 through November 5, by dialing 402-998-1719 and
using the passcode 1029. Individuals who dial in will be asked to identify
themselves and their affiliations. Investors, analysts and the public are also
invited to listen to the conference call over the Internet by visiting our
website at http://www.oxfordhealth.com. To listen to this call live on the
Internet, visit the investor page of Oxford's Web site at least 20 minutes
early (to download and install any necessary audio software).
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, third party administration of employer-funded benefits
plans and Medicare plans.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release, including statements concerning
the Company's projections for the remainder of 2002 and initial projections
for 2003 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 "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, 2001 and Part I, Item 2, of the Company's 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
CONTACT:
Investors - Gary Frazier, +1-203-459-7331, or
Deborah Abraham, +1-203-459-6674, or Media - Maria Gordon-Shydlo,
+1-203-459-7674, all of Oxford Health Plans, Inc.
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