PRESS RELEASE
Contact: Reena Joseph
Phone: 914-235-6000 ext. 14
Email: rj@corporateresearchgroup.com
Website: www.corporateresearchgroup.com/research-reports/

'06 LOOKS LIKE ANOTHER GOOD YEAR FOR MANAGED CARE
BUT WILL THE RIDE LAST?

NEW ROCHELLE, NY USA -- HEALTHCARE UPDATE NEWS SERVICE(TM) -- FEBRUARY 28, 2006: Despite periodic investor fears that the managed care industry is overdue for a downturn, managed care organizations are poised for another strong year in 2006. Six straight years of profit growth and spectacular stock market performance have helped to establish credibility and confidence among investors. But the question remains: how long will the ride last?

According to The Outlook for Managed Care 2006, a 100-page annual forecast and market research report produced by the health care analysts at Corporate Research Group, the managed care industry is on the brink of some critical change. Industry-wide net income is expected to increase 15% in 2006, with revenues growing 9% and commercial premiums up 8% after benefit buy-downs.

Fully funded HMO and POS membership will be flat in 2006. CRG analysts predict that while the rise in consumerism will begin to chip away at traditional managed care enrollment, it will also provide tremendous opportunity to grow a new healthcare insurance franchise based on high-deductible health plans with saving accounts.

"It's been a great run for managed care, but the industry is mature and facing pricing pressures and continued demands from employers for lower costs," said Carl Mercurio, president and publisher, Corporate Research Group, a division of WRG Research Inc. "Meanwhile, the consumer-directed healthcare revolution threatens to remake the entire industry, with uncertain prospects for long-term industry profitability."

It's no wonder that the managed care industry continues to consolidate at a break-neck pace with 28 deals valued at $53.8 billion completed or announced in 2004 and 2005 alone. And as health plans achieve cost savings through consolidation and improved efficiency through new technology, industry profitability is at an all-time high, with net margin projected to hit 5.8% in 2006.

The Outlook for Managed Care 2006, now in its 13th year, provides a comprehensive look at the market of yesterday, today and tomorrow. The report provides proprietary rankings of leading for-profit and not-for-profit managed care organizations, pharmacy benefit management companies, and behavioral, dental and vision plans. Other features include the premium outlook for 2006, financial and enrollment trends, analysis of specialty segments (prescription drugs, mental health, dental, vision) and detailed profiles of 40 major managed care organizations. The Outlook for Managed Care 2006 is prepared by the editors of Corporate Research Group, publisher of Managed Healthcare Market Report, HSA Market News, and eHealth Insider.

ALSO AVAILABLE FROM CORPORATE RESEARCH GROUP:

The Managed Care M&A Explosion: Implications, Valuations and Strategies, a landmark study, provides in-depth analysis on the market for mergers and acquisitions, examination of major deals, including specialty segment deals and detailed profiles of leading companies. The report analyzes the key strategies behind merger and acquisition activity in the managed care sector and provides a scorecard of valuations as a multiple of cash flow. Both The Outlook for Managed Care and The Managed Care M&A Explosion are based on proprietary research and hundreds of interviews with healthcare industry representatives.

ABOUT CORPORATE RESEARCH GROUP (CRG):

Corporate Research Group (CRG) has been serving the managed healthcare marketplace for over 14 years as the industry's leading source for breaking news, strategic intelligence, market research and custom consulting. The dedicated staff of CRG analysts and writers supply critical data and timely alerts to the nation's largest employers, payers, brokers, benefit consultants, the Wall Street community, managed care, HMOs, PPOs, PBMs, providers, pharmaceutical manufacturers, and specialty pharmacies. CRG gets behind the headlines and press releases to provide the strategic information and data you need to succeed. CRG products consist of print and electronic newsletters, email updates, annual forecasts, conferences, CD-Roms and our unique Managed Care ACCESS online information service. All CRG products are available via the Internet at www.corporateresearchgroup.com. For more information contact Reena Joseph, at 914-235-6000.

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