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There have been numerous stories in the local and national news regarding the status of managed care and HMOs in particular. These stories address a wide variety of issues from the quality of care provided by HMOs to their financial stability. As a result of this news coverage, you may have questions about medical stuff, like most health plans, has weathered difficult financial times for the past couple years. In order to regain its balance, has worked hard to privatemedicalinsurance control medical costs, privatemedicalinsurance keep administrative costs low and price its products appropriately. These strategies have dramatically improved the Company''s financial privatemedicalinsurance position over the past 15 months. In fact, during last year, they achieved an operating margin of 1.7%.

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