A.M. Best Takes Various Rating Actions on WellCare Health Plans, Inc.'s HMO Subsidiaries

Business Wire, July 31, 2007

OLDWICK, N.J. -- A.M. Best Co. has taken various rating actions on the financial strength ratings (FSR) and issuer credit ratings (ICR) of the health maintenance organization (HMO) subsidiaries of WellCare Health Plans, Inc. (WellCare) (Tampa, FL) (NYSE:WCG). (Please see below for a detailed listing of the companies and ratings.)

These ratings are based solely upon public information and present the most informed view A.M. Best can offer, short of an insurer participating in the full interactive rating process. A.M. Best uses the same rating scale and definitions as it does for its long-term financial strength interactive ratings but applies a pd modifier to ensure the user is aware of the more limited information basis for the rating.

WellCare's HMO ratings reflect the companies' sufficient level of capitalization, favorable underwriting performance and relatively consistent operating results. Offsetting rating factors include a reliance on government sponsored programs, coupled with a rapid growth in WellCare's Medicare lines of business in recent years, which A.M. Best believes could pose future profitability challenges for the organization should reimbursement rates be cut.

The FSR has been upgraded to B (Fair) from B- (Fair) and an ICR of "bb" has been assigned to HealthEase of Florida, Inc., a subsidiary of WellCare Health Plans, Inc.

The FSR of B (Fair) has been affirmed and an ICR of "bb" has been assigned to WellCare of New York, Inc., a subsidiary of WellCare Health Plans, Inc.

The FSR of B- (Fair) has been affirmed and an ICR of "bb-" has been assigned to WellCare of Florida, Inc., a subsidiary of WellCare Health Plans, Inc.

The FSR of C (Marginal) has been affirmed and an ICR of "b" has been assigned to Harmony Health Plan of Illinois, Inc., a subsidiary of WellCare Health Plans, Inc.

The FSR has been downgraded to C (Marginal) from C (Marginal) and an ICR of "b-" has been assigned to WellCare of Connecticut, Inc., a subsidiary of WellCare Health Plans, Inc.

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.