Leon County Judge Orders Md Medicare Choice into Receivership for Purposes of Liquidation
Tara Klimek or Nina Banister
TALLAHASSEE— A Leon County Circuit Court judge late Monday ordered Tampa-based MD Medicare Choice (MDMC), a Medicare Advantage plan with more than 16,000 members in 23 Florida counties, placed into receivership for the purpose of liquidation. The Department of Financial Services (DFS) was named receiver, effective at 11:59 p.m. tonight, and will work closely with the Centers for Medicare and Medicaid Services (CMS) and Humana, which will provide replacement coverage effective Wednesday, October 1.
Judge P. Kevin Davey ordered the receivership after reviewing financial records showing that MDMC is financially insolvent and has no cash flow. The company already was under administrative supervision with the Office of Insurance Regulation, but fell into further financial hardship last week when its access to $27 million in reserves, invested in The Primary Fund of Reserve Management Corp., was frozen by the Securities and Exchange Commission.
“Our highest priority is to work with the appropriate agencies to ensure a smooth transition for policyholders,” said Florida Chief Financial Officer Alex Sink, who oversees DFS.
As a result of the court order, CMS is terminating MDMC’s Medicare Advantage contract, and the CMS Medicare Advantage Prescription Drug contract with MDMC will be cancelled at 11:59 p.m. tonight, when policyholders will be switched to Humana policies that provide similar benefits. For information about Humana benefits, beneficiaries should call 1-800-758-4806 (TTY, please call 1-800-833-3301). For information about the receivership, call 1-800-882-3054 or visit http://www.myfloridacfo.com/Receiver/.
MDMC has policyholders in Alachua, Brevard, Broward, Charlotte, Miami-Dade, Duval, Escambia, Hernando, Hillsborough, Lake, Lee, Manatee, Marion, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Santa Rosa, Sarasota, Seminole, and Volusia counties.
In addition to the replacement coverage with Humana, members also have a special enrollment period if they wish to choose another plan before the end of 2008.
As a statewide elected officer of the Florida Cabinet, Chief Financial Officer Alex Sink oversees the Department of Financial Services, a multi-division state agency responsible for management of state funds and unclaimed property, assisting consumers who request information and help related to financial services, and investigating financial fraud. CFO Sink also serves as the State Fire Marshal.