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FOR RELEASE: January 14, 2003
CONTACT: Pamela Williams
Office of Communications
405/271-5601

AmCare Wind Down Delayed

Legal action by the Texas Department of Insurance has interrupted Oklahoma’s wind down process for AmCare Health Plans of Oklahoma, Inc. (“AmCare Oklahoma”).

The Oklahoma State Department of Health announced today that a Texas state court appointed a temporary receiver over AmCare Health Plans of Texas, Inc. and AmCare Management, Inc. (“AmCare Management”) and enjoined any activities affecting the receivership, effective Dec. 16, 2002.

Prior to the injunction, AmCare Management provided support services for the wind down of AmCare Oklahoma. Whether AmCare Management will provide any further support may remain undetermined for some time. As a result, the timelines for payment of claims to Oklahoma health care providers that was previously established will be delayed. The Oklahoma State Department of Health, however, does not anticipate this delay to be substantial.

AmCare Health Plans of Oklahoma, Inc., a health maintenance organization (HMO), lost its license to operate in Oklahoma last fall, and in a consent order with the Oklahoma State Department of Health, agreed to wind down its business operations in Oklahoma. An independent manager, Bostick/Crawford Consulting Group of Colleyville, Texas, was appointed by the state health department to direct the wind down of the HMO’s business operations in Oklahoma, including funds disbursements for pending claims of Oklahoma health providers.

In an effort to minimize the delay to completing the wind down, the independent manager met with the deputy receiver for AmCare Health Plans of Louisiana, Inc. to discuss contracting for claims management, information technology, accounting, accounting support services, and the cost of providing these services. The Louisiana deputy receiver has familiarity with the AmCare claims management system and is using a compatible claims management system in the Louisiana receivership. However, the independent manager will also be making contact with other third party administrators who have claims management systems compatible with the AmCare system to retain the most economic and efficient claims administrator for the timely processing of wind down activities.

Whether the Louisiana deputy receiver or another third party administrator is used, retaining a company with knowledge of AmCare’s systems should expedite re-establishing the wind down timelines while minimizing additional administrative costs.

Providers should note that the Oklahoma State Department of Health will furnish additional information once a contract for administrative services is in place and claim payment time lines have been reestablished.

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