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May 24, 2000
HMO Suspended from Conducting Business in District of Columbia
Washington, DC -- District of Columbia Insurance and Securities Regulation Commissioner Lawrence H. Mirel issued an order of suspension of American Preferred Provider Plan for the Mid Atlantic, Inc.'s (APPP) certificate of authority to do business in the District as a health maintenance organization (HMO). According to the order, APPP has failed to maintain the minimum statutory net worth requirement of 1 million dollars.
"Our top priority for consumer protection is first achieved by ensuring that companies operating in the District of Columbia are solvent and financially able to pay claims," said Commissioner Mirel. APPP failed to meet DC requirements for protection against insolvency.
The Insurance Bureau of the Department of Insurance and Securities Regulation (DISR), issued an order of suspension/notice of revocation on March 20, 2000. A hearing was scheduled for May 18, 2000. On May 17, 2000, however, APPP filed a consent order waiving its right to a hearing and acknowledging its failure to meet the District net worth requirements for health maintenance organizations.
The order by the Commissioner provides that APPP shall not enroll any additional enrollees except newborn children; other newly acquired dependents of existing enrollees, other newly eligible individuals or enrollees assigned to the plan by the DC Department of Health, Office of Managed Care, and cannot engage in any advertising or solicitation. The order will not prevent an enrollee from continuing coverage with APPP.
For further questions about the order, please contact DISR attorney, Katheryne Rickford at (202) 442-7758.
The DC Department of Insurance and Securities Regulation (DISR) has two missions, (1) to provide fair, efficient and fast regulatory supervision of the insurance and securities businesses for the protection of the people of the District of Columbia, and (2) to create conditions that will retain and attract national and international insurance and other financial businesses to the District. | 
