Kansas Insurance Commissioner Sandy Praeger approved Coventry Health Care's acquisition of Preferred Health Systems, a subsidiary health plan of five-hospital Via Christi Health, Wichita.
Approval of Coventry deal comes with strings
Praeger issued several stipulations that allow the insurance department to oversee the transition following the transaction, which was announced in October and remains subject to federal antitrust clearance. The conditions include requirements that for one year Coventry provide quarterly reports showing an adequate provider network; provide quarterly reports showing improvements in the administration of mental health benefits; and make no changes in policies, rates and benefits.
With 120,000 members, Preferred is the largest health plan in Wichita, and Praeger also stipulated that Coventry maintain an office there dedicated to serving those customers through the end of 2011.
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