A.M. Best Upgrades Issuer Credit Rating of Dean Health Plan Inc.

A.M. Best Co. has affirmed the financial strength rating of B++ (Good) and upgraded the issuer credit rating to "bbb+" from "bbb" of Dean Health Plan Inc. (DHP) (Madison, WI). The outlook for both ratings is stable (see also Managed Care).

The ratings of DHP reflect the explicit service agreement with its owners, Dean Health Systems, Inc. (DHS) and SSM Health Care, which guarantees capital levels and transfers risk from the plan through risk pooling. The ratings also factor in DHP's commanding market share within its primary service area, which has been sustained through flexible product offerings and its integrated care delivery model between DHP and its owner providers. Despite current economic conditions, the company has maintained high retention rates while significantly improving underwriting and net gains over the prior year.

Offsetting these strengths is the plan's somewhat low risk-adjusted capital for the current ratings based on Best's Capital Adequacy Ratio (BCAR); however, DHP's ratings reflect enhancement from the ownership support it receives from DHS and SSM Health Care. A.M. Best also notes that the plan maintains relatively high premium leverage, as premium growth has outpaced its capital growth.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.