State takes over Tampa-based Medicare HMO

Medicare will withdraw its contract with Tampa-based MD Medicare Choice at midnight after Florida regulators put the Medicare HMO into receivership.

The HMO has about 16,000 members in  Florida and 1,700 in the Tampa Bay area. To prevent disruption of care, Medicare will transfer them Wednesday into a similar HMO run by Humana.

Clients can continue seeing their primary care physician through the end of the year, even if that doctor is not on Humana's network, Medicare officials announced in a news release. Anyone currently receiving treatment in a hospital, nursing home or receiving chemotherapy or dialysis can continue those treatments.

Anyone who does not want to remain with Humana can switch to other HMOs or return to traditional Medicare until Jan. 1. After Jan. 1, their 2009 Medicare coverage will be provided by whatever plan they select during the annual end-of-year signup period, which begins in November.

MD Medicare Choice members should receive a letter from Medicare on Wednesday or Thursday and a letter later in the week from Humana, explaining these changes and options.

According to court documents, MD Medicare Choice the failed to maintain required reserve amounts to guarantee treatment. It also has a $10-million overdraft at Florida Bank.

Medicare HMO's are private insurance companies that receive monthly payments from the government for each person they cover. They then provide all that person's health care under the Medicare program. HMOs that treat patients efficiently can earn more than they pay out to doctors and hospitals.

MD Medicare Choice representatives could not be reached for comment.  For further information, call the Florida SHINE program toll-free at 1-800-963-5337.

Stephen Nohlgren, Times staff writer

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