OXFORD: Withdraws from New York City Medicaid
"Oxford Health Plans Inc. announced yesterday plans to exit Medicaid in New York City, marking the managed care company's complete withdrawal from the Medicaid market," effective Jan. 1, Reuters reports. Managed Healthcare Systems, a subsidiary of AmeriChoice Corp., will purchase Oxford's Brooklyn Medicaid contract and the Medicaid elements of Oxford's physician contracts under a deal already approved by the state and city Departments of Health. The move comes after Oxford posted losses of $291 million last year and $606 million so far this year, primarily on its Medicaid business, and will complete a Medicaid exodus already underway in New Jersey, Connecticut and Pennsylvania. "We believe that the proposed plan with AmeriChoice best serves the needs of our members, and will mean continuity of care and a smooth transition," said Oxford CEO Dr. Norman Payson (11/18).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.