Mich. Commissioner Granted Order of Rehabilitation for The Wellness Plan

July 9, 2003

Michigan’s Office of Financial and Insurance Services (OFIS) Commissioner Linda Watters announced that the Ingham County Circuit Court approved an Order for Rehabilitation of The Wellness Plan effective July 1.

“The Wellness Plan is one of Michigan’s largest Medicaid HMOs – with over 107,000 Medicaid members,” Watters said. “Today, I took the appropriate action, pursuant to Michigan statute, to ensure that medical services would continue for all members of The Wellness Plan.”

The Rehabilitation process allows OFIS to make arrangements to preserve The Wellness Plan’s provider network, minimize disruption of services to its members, and to restore the financial solvency of The Wellness Plan. The Commissioner, as court ordered rehabilitator in charge of The Wellness Plan, will oversee the payment to providers for health care services on a going forward basis. Pre-rehabilitation claims will be considered after a complete financial review has been conducted.

“We are working with the board of directors of The Wellness Plan in a consensual rehabilitation,” Watters added.

“Medicaid beneficiaries who are currently enrolled in The Wellness Plan can be assured their health care services will not be interrupted due to this rehabilitation order,” Michigan Department of Community Health Medical Services Administration Director Paul Reinhart said. “The Department of Community Health continues to work closely with The Wellness Plan to ensure that timely provider claim payments continue and that Medicaid beneficiaries receive quality health care services.”

The action came after supervision of the company by OFIS. The Wellness Plan began operation in 1973. As of March 31, 2003 The Wellness Plan had 10,281 commercial members and 107, 244 Medicaid members throughout Michigan.

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