Kentucky Takes Control of ‘Financially Troubled’ HMO
Kentucky officials seized control Wednesday of Lexington's "financially troubled" Advantage Care Inc., and urged the HMO's enrollees to find new health care providers before the end of the year, the Lexington Herald-Leader reports. "The company's operations could end as early as Dec. 31," the Kentucky Department of Insurance said in a statement. Insurance Commissioner George Nichols III added, "Based on what we know about the company's financial condition, it will go to liquidation. The objective is to get policyholders out of there as soon as possible, because they may run out of money" before the end of the year. About 80% of Advantage Care's customers had enrolled for health coverage for 2001, Nichols said (Jordan, Lexington Herald-Leader, 11/9). Yesterday, Nichols warned Advantage Care's doctors to "honor" their contracts with the HMO, threatening those who deny service to the HMO's customers with "legal action." He said 20 physicians or physicians' groups have called his office seeking to cancel their contracts with Advantage Care (Jordan, Lexington Herald-LeaderThis is part of the KHN Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.