Health care providers across Oklahoma started receiving checks last month worth more than $15.3 million. The funds are actual damages owed by the defunct AmCare Health Plans of Oklahoma Inc., a health maintenance organization (HMO). Oklahoma Insurance Commissioner John D. Doak had this to say:
This is great news for Oklahoma hospitals and medical providers. They were left holding the bag when this company failed to pay hundreds of claims. Now, finally, these claims will be paid in full. AmCare had no intention of paying its claims. This was a purely financial move on their part and we won’t stand for it. I refuse to let Oklahoma taxpayers foot the bill for companies’ mistakes.
Oklahoma, Texas and Louisiana filed suit against AmCare Health Plans after it was placed in receivership in 2003. The company had stopped its operations in Oklahoma on Oct. 1, 2002. Investigators found AmCare was severely undercapitalized and was manipulating its financial records by moving assets back and forth between sister companies in an attempt to appear solvent. The payments, administered through the Oklahoma Receivership Office, will complete principal payments to the affected providers. In 2006, the Oklahoma Insurance Department successfully petitioned the court for an early distribution of approximately $8.8 million.
Source: Insurance Journal
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