The Texas Department of Insurance has placed AmCare Health Plans, one of Houston's last three Medicare HMOs, under state supervision because of growing concerns about the company's financial health. In addition, AmCare said it plans to drop its 39,000 members in Oklahoma, where it has lost nearly $16 million. The company, which also offers commercial and Medicaid HMOs, covers 56,000 members in Texas and Louisiana. AmCare reported a net loss of $6.2 million in the fourth quarter of 2001 and a net loss of $25,332 in the first quarter of 2002. Its affiliates also owe the company more than $20.2 million, according to Texas regulators. Earlier this year, AmCare was placed under administrative oversight, a less restrictive order under which companies are usually required to develop a turnaround plan. Over the past two years, seven health plans have pulled out of the Medicare HMO market in Houston, leaving seniors there with only two choices besides AmCare: PacifiCare Health Systems and SelectCare of Texas. -- by Laura B. Benko
Texas Medicare HMO under state supervision
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