New York State
NEW YORK STATE INSURANCE DEPARTMENT ANNOUNCES
WELLCARE OF NEW YORK TRANSACTION TO MOVE FORWARD
Deal Ensures Continued Coverage for 60,000 Subcribers
Superintendent Neil D. Levin today announced that he has been informed by WellCare of New York that more than 50 hospitals have signed agreements to facilitate the transaction with Dr. Kiran C. Patel, principal of Wellcare of Florida, and Group Health Incorporated (GHI) allowing continuity of coverage for the 60,000 subscribers in New York. Dr. Patel and GHI are expected to execute definitive agreements with WellCare of New York by the close of business Monday, May 17 and closings are expected on or before June 1, 1999.
Levin also announced that WellCare of New York reports that as a result of this deal, all bills rendered to WellCare as of May 1 will be paid in full. GHI will be acquiring the commercial subscribers and will establish a presence in the Mid-Hudson region and in the counties currently serviced by WellCare. Dr. Patel will acquire an interest in WellCare of New York and will continue to service WellCares current Medicare, Medicaid and CHP subscribers.
"We are pleased that the hospitals have agreed to move forward because this transaction will ensure the continuity of coverage and protect the 60,000 WellCare subscribers in the network," said Levin. "This means that the subscribers will have a seamless transition and will be assured of coverage from familiar providers, without any disruptions."
The Insurance and Health Departments will move forward to expeditiously provide the necessary approvals for the transaction.