Credit rating agency upgrades UPMC Health Plan
Insurance company rating agency A.M. Best Co. Inc. has upgraded UPMC Health Plan, citing its strong membership and premium growth over several years.
Oldwick, N.J.-based A.M. Best said that the health insurance arm of hospital-and-physician network UPMC earned a financial strength rating of “A-,” which it considers “excellent” and is up from “B++,” which it considers “good.”
UPMC Health Plan also received a credit rating upgrade to “a-,” up from “bbb+,” A.M. Best said.
UPMC Health Plan is the second-largest health insurer in Western Pennsylvania, with about 1.8 million members. Highmark Inc. is the largest, with about 2 million members. UPMC is the largest health system in Western Pennsylvania, with 19 hospitals and more than 3,400 physicians.
While A.M. Best cited the financial strength of UPMC as a positive for its health insurance arm, the rating agency also said that it is “somewhat concerned” about UPMC Health Plan's reliance on loans from UPMC to maintain its capital levels.