AM Best Upgrades Credit Ratings of Health Alliance Medical Plans, Inc. and Health Alliance-Midwest, Inc.July 23, 2020
AM Best has upgraded the Financial Strength Rating and Long-Term Issuer Credit Ratings of Health Alliance Medical Plans, Inc. (HAMP) (Champaign, IL), and its wholly-owned subsidiary, Health Alliance-Midwest, Inc. (Midwest) (Champaign, IL). The corporations are collectively referred to as Health Alliance.
- Health Alliance’s Financial Strength Rating was upgraded to A- (Excellent) from B++ (Good).
- The Long-Term Issuer Credit Ratings were upgraded to “a-” from “bbb+”.
The ratings reflect Health Alliance’s balance sheet strength, which AM Best categorizes as strong, as well as favorable operating performance over the past few years. Health Alliance reported underwriting gains in 2019, primarily driven by solid gains in its individual and state lines of business. A change in the mix of business also has improved margins, resulting in an increase in 2019 operating gains. Additionally, the health plan has products competitively priced in the market, enabling growth in membership. Health Alliance has diversified revenue sources through its growing self-insured membership block and expansion into markets outside of Illinois. AM Best expects that Health Alliance’s earnings for 2020 will be within the projections provided by senior management.
“This recognition solidifies what we’ve known for nearly 40 years. Health Alliance offers affordable plans and exceptional customer service with the mission of delivering a healthcare solution that fits each member’s changing health needs,” Health Alliance President and Chief Executive Officer Dennis P. Hesch said.
If you have any questions, please contact us at BrokerServices@healthalliance.org or by calling (877) 917-8489.