INScompanies Blog

For Immediate Release

(New York, NY - September 29, 2005) The boards of directors of Group Health Incorporated (”GHI”) and HIP Health Plan of New York (”HIP”) have agreed to unite the two companies under the leadership of a governing Foundation, which will include an equal number of directors from both companies. The companies will continue in separate operations while an integration plan is developed.

With a combined membership of more than four million members in the metropolitan area and combined revenues of over $7 billion, the merger will create the largest health insurer based in New York State. GHI and HIP have indicated that a key part of the combined company’s focus will be to continue the two companies’ historic missions of improved access to high-quality health care, developing innovative products, addressing the uninsured and supporting community service and health care charitable organizations.

GHI and HIP, established in 1937 and 1947 respectively, are two of the longest operating health care companies in New York. The joining of these companies will provide members with access to a powerful set of health care solutions and a wide range of provider networks in New York City and State, New Jersey, Connecticut and Massachusetts. This new organization, with its roots in the community, will compete with the large, well-financed national plans.

The transaction is subject to regulatory approval and execution of definitive agreements.

Anthony L. Watson, Chairman and CEO of HIP, said: “The joining of GHI and HIP represents a milestone in the history of health care in New York. We are signature New York companies with more than half a century of experience. Our operations are highly complementary and our combined advantages will provide current and new members with an innovative level of access to the best health care possible.”

Frank J. Branchini, President and CEO of GHI, said: “GHI and HIP have been pioneers in the provision of health care coverage to New Yorkers. The combination of GHI and HIP will provide the tri-state area with a strong local company providing a full range of products tailored to the diverse needs of the community. The new organization, built on the stable foundation of each organization, will continue in the proud tradition of GHI and HIP, with a commitment to improving quality, access and affordability of health care coverage.”

About GHI

GHI is a statewide not-for-profit health insurer serving New Yorkers since 1937. GHI and its wholly-owned subsidiary, GHI HMO, provide health insurance and administrative services to more than 2.6 million people. GHI offers customers a variety of PPO, EPO, HMO, and prescription drug plans. Throughout its history GHI has pioneered many of the programs that are now standard in the health insurance field. For additional information about GHI, please visit www.ghi.com.

About HIP

HIP Health Plan of New York, which was established in 1947, provides its members access to quality, affordable health care from convenient, leading hospitals, medical groups and doctors in private practice. With its subsidiaries, Vytra Health Plans and ConnectiCare, approximately 1.4 million members receive care from about 41,000 providers in over 61,000 locations in New York, Connecticut and Massachusetts. HIP also recently entered into an acquisition agreement, which is subject to regulatory approval, with PerfectHealth Insurance Company, a provider of high deductible health insurance policies in the New York market. For additional information about HIP, please visit www.hipusa.com.
 
From:
Group Health Incorporated
441 Ninth Avenue
New York, NY 10001
 
 
HIP Health Plan of New York
55 Water Street
New York, NY 10041
 
Contact:
Howard J. Rubenstein
Rubenstein Associates, Inc.
212-843-8080

THE ACQUISITION IS EXPECTED TO INCREASE GHI HMO’S MEMBERSHIP BY 8,000

(New York, NY - July 28, 2005) GHI HMO Select Inc., a fully owned subsidiary of New York City-based health insurer Group Health Incorporated (GHI) will acquire the assets of ABC Health Plan, a non-profit Prepaid Health Services Plan (PHSP) previously owned and operated by Beth Israel Medical Center and the Institute for Urban Family Health (IUFH). ABC Health Plan provides managed care services to Medicaid, Family Health Plus, and Child Health Plus enrollees who reside in the Bronx and Manhattan.

The approximately 8,000 ABC Health Plan members will become members of GHI HMO. ABC Health Plan’s network, which includes family practice sites, primary care locations, and hospitals such as Beth Israel Medical Center, St. Luke’s Roosevelt Hospital, Bronx Lebanon Hospital, Harlem Hospital, Jacobi Hospital, and North Central Bronx Hospital, will also become part of the network that serves GHI HMO members enrolled in government programs such as Managed Medicaid, Family Health Plus, and Child Health Plus.

For the fifth consecutive year, the New York City-based health insurer Group Health Incorporated (GHI) has partnered with the NY Mets to recognize, honor and bring special moments to deserving individuals through the GHI-Mets Magic Program. Six different youngsters, some recovering from life-threatening illnesses, have had the once-in-a-lifetime thrill of throwing the first pitch at a Mets game. Adults who devote themselves to volunteer work have received pre-game on-field honors, plus a contribution to their favorite charity.

“This is a win-win situation for members of both ABC Health Plan and GHI,” said Frank Branchini, President and CEO of GHI. “It is in keeping with GHI’s mission to serve all segments of the New York City population and also with our corporate strategy to expand our public programs portfolio. ABC Health Plan enrollees will be able to continue to see their current providers and to take advantage of the larger GHI HMO network, which spans New York City and the surrounding counties. They will also be able to participate in GHI HMO’s Disease Management programs. Current GHI Medicaid Managed Care members will gain access to the additional ABC network providers, as well.”

It is anticipated that ABC Health Plan’s Medicaid Managed Care, Family Health Plus, and Child Health Plus members will be transferred to GHI HMO on August 1, 2005. Service to ABC Health Plan members will not be disrupted.

About GHI

Group Health Incorporated (GHI) is a statewide, not-for-profit insurer serving New Yorkers since 1937. GHI and its wholly-owned subsidiary, GHI HMO, provide health coverage and administrative services to more than 2.6 million individuals, offering a variety of insurance options and administrative-services-only arrangements. 

HOSPITAL NETWORK EXPANSION ALSO ANNOUNCED

(New York, NY - February 7, 2005) Group Health Incorporated (GHI) has been selected by the Centers for Medicare & Medicaid Services (CMS) to offer a health plan in New York City, and Rockland and Westchester Counties for beneficiaries who are eligible for both Medicare and Medicaid.

The GHI Medicare PPO Value plan provides a new health care coverage option specifically designed to meet the needs of these beneficiaries. Members who qualify are not subject to out-of-pocket expenses for most services and have access to added health benefits such as disease management and health and wellness programs.

“GHI is focused on providing our members with the highest quality of care and making sure they have access to plans that target their specific needs and strengthen their coverage.” said Frank Branchini, President and CEO of GHI.

GHI also announced a significant increase in its GHI Medicare Choice PPO hospital network, including the North Shore Long Island Jewish Hospital system. Additional facilities include Maimonides Medical Center, Brookdale Hospital Medical Center, Interfaith Medical Center, Kingsbrook and Jewish Medical Center in Kings County, Flushing Hospital Medical Center, Jamaica Hospital Medical Center, St. John’s Hospital-Episcopal Health Services in Queens County, Staten Island University Hospital in Richmond County and Good Samaritan Hospital in Rockland County. The addition of these facilities brings the total number of hospitals in the GHI Medicare Choice PPO network to 75.

For more information about GHI Medicare Choice PPO plans, please call 1-800-611-8454 or TDD/TTY 1-877-208-7920.

About GHI

Group Health Incorporated (GHI) is a statewide, not-for-profit insurer serving New Yorkers since 1937. GHI and its wholly-owned subsidiary, GHI HMO, provide health coverage and administrative services to more than 2.6 million individuals, offering a variety of insurance options and administrative-services-only arrangements.