New York State
Insurance Department

DEPARTMENT FINES OXFORD HEALTH PLANS $3 MILLION;
COMPANY ALSO ORDERED TO MAKE $500,000 IN RESTITUTION


New York, December 23, 1997 

Superintendent of Insurance Neil D. Levin today announced that Oxford Health Plans has been fined $3 million for violations of New York State Insurance Law and Insurance Department regulations, and has been ordered to pay $500,000 in restitution to customers and health care providers. 

The fine is the result of an Insurance Department market conduct examination of the company undertaken at the direction of Governor George E. Pataki. In May, the Governor directed the Department to closely examine HMOs that had been delaying payments to customers, doctors, hospitals and other health care providers. The Oxford examination is the first one to be completed by the Department. 

"Our primary goal is to protect policyholders and ensure Oxford's solvency," said Superintendent Levin. "At the Department's direction, Oxford has already undertaken a number of steps in order to get the company back on the right track, including replacing senior management, strengthening its Board of Directors, retaining outside management consultants, establishing internal controls relating to claims and expenses and increasing its reserves." 

The following summarizes the major findings in the Department's examination report and actions required to be undertaken by Oxford: