Wellcare Poised to Enter Florida HMO Market

The WellCare Management Group, Inc., parent company of WellCare of New York, Inc. and WellCare of Connecticut, Inc., has signed a letter of intent to acquire Tampa General HealthPlan, Inc. The Florida health maintenance organization does business under the name HealthEase.

The transaction involves the sale of the outstanding and issued membership interest in HealthEase, together with certain assets, including its furniture and equipment, to WellCare.

Additionally, Comprehensive Health Management, Inc., an affiliate of WellCare, has signed a management agreement with HealthEase which will go into effect immediately upon receiving approval from the Florida Department of Insurance and the Agency for Health Care Administration.

According to the agreement, all liabilities incurred prior to the effective date of the management agreement, including claims for date of service prior to that effective date, will be paid by HealthEase. The transaction is subject to approval from the Florida Department of Insurance and the Agency for Health Care Administration, among other things.

HealthEase is a direct contract network model HMO, which began offering its Medicaid Plan in December of 1994 and received its license to operate as a commercial health maintenance organization in June of 1997. HealthEase currently serves approximately 7,100 Medicaid members in the Tampa Bay area.

Wellcare has the systems in place to immediately take over operations and move forward with growth plans in Florida, Kiran C. Patel, M.D., chairman, president and CEO of WellCare said in a statement. "The acquisition allows us to maintain the current level of competition in the Florida HMO market and offer prospective members a choice in health plans."

WellCare's service area extends from New York City to the southern Adirondacks, west into the Mohawk River Valley and Southern Tier counties, and east into Connecticut.