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Firm Returns To Solvency

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An Ingham County, Mich., state court judge has approved an order releasing The Wellness Plan from rehabilitation.

The Wellness Plan, Detroit, was a struggling health maintenance organization plan when the Michigan Office of Financial and Insurance Regulation put it in rehabilitation in 2003.

Michigan insurance regulators have addresses the company’s problems by transforming it into a clinic network, officials say.

When the company entered rehabilitation, it faced about 50 pending malpractice cases. The regulators in charge of the rehabilitation have paid about $9 million to settle 28 of the cases, and the remaining cases were settled with no Wellness Plan liability, officials report.

The regulators also have bought enough medical malpractice tail coverage to pay as much as $1 million per claim, up to a total of $10 million.


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