MEDICARE HMOS: Foundation Pulls Out Of NJ, CT Counties
Foundation Health Systems Inc. announced Friday that it will withdraw from the Medicare HMO market in five counties in New Jersey and Connecticut because of low federal reimbursement rates in the region, Bloomberg News/Los Angeles Times reported Saturday. Foundation "said it's being reimbursed an average of $417 a patient per month by the Medicare program in those five counties, compared with $623 a person in New York." The company's shares rose 19 cents to $12.31 on the news (9/5). Investor's Business Daily reports that approximately 8,000 Foundation members live in Monmouth, Ocean and Cape May counties in New Jersey and New London and Windham counties in Connecticut (9/8).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.