AM Best Places Credit Ratings of Western Health Advantage Under Review With Developing Implications

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with developing implications the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Western Health Advantage (WHA) (Sacramento, CA).

This Credit Rating (rating) action follows several consecutive quarters of reported operating losses and related declines in capitalization during fiscal-year 2022. The operating losses were driven largely by COVID-19-related cost and risk-adjustment transfer payments related to its Covered CA exchange business. The ratings for WHA will remain under review with developing implications, pending the filing and review of fiscal year-end results, and while AM Best conducts discussions with WHA management regarding explicit financial support and potential contract relief expected from the organization’s sponsors, as well as the impact those may have on earnings and risk-adjusted capital, as measured by Best's Capital Adequacy Ratio (BCAR).

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.