July 2, 2003

Office of Financial and Insurance Services (OFIS) Commissioner Linda A. Watters announced that the Ingham County Circuit Court approved an Order for Rehabilitation of The Wellness Plan effective July 1.

“The Wellness Plan is one of Michigan’s largest Medicaid HMOs – with over 107,000 Medicaid members,” Watters said. “Today, I took the appropriate action, pursuant to Michigan statute, to ensure that medical services would continue for all members of The Wellness Plan.”

The Rehabilitation process allows OFIS to make arrangements to preserve The Wellness Plan’s provider network, minimize disruption of services to its members, and to restore the financial solvency of The Wellness Plan. The Commissioner, as court ordered rehabilitator in charge of The Wellness Plan, will oversee the payment to providers for health care services on a going forward basis. Pre-rehabilitation claims will be considered after a complete financial review has been conducted.

“We are working with the board of directors of The Wellness Plan in a consensual rehabilitation,” added Watters.

“Medicaid beneficiaries who are currently enrolled in The Wellness Plan can be assured their health care services will not be interrupted due to this rehabilitation order," said Michigan Department of Community Health Medical Services Administration Director Paul Reinhart. "The Department of Community Health continues to work closely with The Wellness Plan to ensure that timely provider claim payments continue and that Medicaid beneficiaries receive quality health care services.”

This action came after supervision of the company by OFIS. The Wellness Plan began operation in 1973. As of March 31, 2003 The Wellness Plan had 10,281 commercial members and 107, 244 Medicaid members throughout Michigan.

Click here for more information about The Wellness Plan and a copy of the rehabilitation order.

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The Michigan Office of Financial and Insurance Services (OFIS) is responsible for the regulation of Blue Cross Blue Shield, 31 HMOs, 143 banks, 275 credit unions, almost 1,500 insurance companies, 1,583 investment advisers, 2,164 securities broker-dealers, 6,000 consumer finance lenders, 105,000 insurance agents, and 120,715 securities agents.

OFIS is part of the Department of Consumer and Industry Services and is primarily fee-funded, requiring minimal public tax dollars for its regulatory and consumer assistance activities. OFIS has insurance, financial institutions and securities information available online at the OFIS web site, www.michigan.gov/ofis, or at the Michigan government home page, www.michigan.gov. All information is also available through the OFIS toll free number, 877-999-6442. If you would like to receive OFIS press releases electronically, please email ppdavis@michigan.gov.