Physicians United

Florida Accountable Care Services

The former owners of the now-defunct Physician United Plan have dropped a lawsuit that accused the accountants who worked for the Medicare Advantage plan of hiding its financial woes from state regulators, the Ocala Star-Banner reports.

Physicians United Plan logo

Health care providers under contract with the beleaguered Physicians United Plan are being warned to continue treating patients, as they undergo a special enrollment period to join more financially stable plans .

The Department of Financial Services on Friday said it sent a letter to providers after hearing reports of patients being denied coverage after the Medicare Advantage plan was placed under state control earlier this week. 

A troubled Medicare Advantage HMO now under state receivership has struggled for years to have enough capital available on hand to pay its bills.

A Tallahassee judge on Monday approved the Department of Financial Services' request to take over and liquidate Physicians United Plan Inc., which had offered Medicare Advantage plans since 2005.

Florida Court System

About 31,000 Florida seniors will need to change their Medicare Advantage plans.

A Tallahassee judge on Monday approved the Department of Financial Services' request to take over and liquidate Physicians United HMO, effective July 1.

Recent financial reports show that Physicians United was nearly $13 million in debt and couldn't pay many health-care providers.

But health plan analyst Allan Baumgarten says more than 21,000 policy holders live in Central Florida or around Tampa Bay.

Florida’s Department of Financial Services on Friday asked a judge to allow a takeover of the troubled Physicians United Medicare Advantage HMO.

The DFS filed a petition in Leon County Circuit Court to place the Orlando-based plan into receivership because it is insolvent. The company’s May financial statement reported assets of $92.4 million, while liabilities amounted to $105.3 million.