HIP Announces ConnectiCare Acquisition; Combined Health Plans Enable Strategic, Regional Growth and Retain Local Control

New York, N.Y. and Farmington, Conn. - HIP Health Plan of New York (HIP) today announced the acquisition of ConnectiCare Holding Company (ConnectiCare) in a transaction that unites the companies, allowing regional growth while retaining local autonomy.

HIP, a private, not-for-profit managed care company, is the largest HMO in the New York metro market with over a million members. ConnectiCare is the third largest health plan in Connecticut and has been one of the state’s fastest growing managed care plans. Founded in 1981, ConnectiCare has 270,000 members in Connecticut and Massachusetts. It will remain headquartered in Farmington, Conn., with its own offices and management. Terms are not being disclosed.

The acquisition of ConnectiCare by HIP is subject to regulatory approval, which is expected within 2004. Upon approval and completion of the transaction, ConnectiCare’s stock will transfer fully from its current investor owners, The Carlyle Group and Liberty Partners, to HIP.

“ConnectiCare, with its high member satisfaction and strong growth, shares HIP’s commitment to excellence and will be an important part of our offerings,” said Anthony L. Watson, Chairman and CEO of HIP Health Plan.

"With similar roots and values, ConnectiCare and HIP have a positive synergy that will enhance and complement both organizations,” said Gus Gamache, President and CEO of ConnectiCare. “HIP’s national reputation as a leader in medical quality and technology will enable us to learn and benefit from each other and share best practices,” Gamache added.

"I’m genuinely excited about our acquisition by HIP,” said Paul Philpott, Sr. Vice President and Chief Marketing Officer for ConnectiCare. “This transaction means more resources to address the difficult challenges of providing high-quality, affordable healthcare in the Connecticut and Massachusetts markets.”

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