Kansas Insurance Commissioner Sandy Praeger's office said this morning that she has approved the sale of Preferred Health Systems to Coventry Health Care.
The order of approval was signed Dec. 24, and the insurance companies were notified.
The approval has stipulations that Coventry must follow and that will allow the Insurance Department to monitor the transition of the sale, "especially for provider-network adequacy," Praeger said in a statement.
* For at least one year, Coventry provides the department a quarterly report showing a network of providers adequate to deliver services in a timely manner to policyholders.
* For one year, Coventry provides a quarterly report on its progress in improving the performance of MHNet, its mental health benefits administrator.
* Coventry will not give MHNet additional responsibilities for at least one year or until Praeger is satisfied that progress has been made.
* Coventry will not make any changes in policies, rates, benefits and similar areas for at least one year, except in compliance with law.
* Coventry immediately implements procedures to ensure timely and accurate communication with the insurance department on complaints, the filing of policy forms and similar processes.
* Coventry immediately implements procedures that ensure all required information is filed in a timely manner.
* Coventry maintains an office in Wichita dedicated to providing services for PHS matters through Dec. 31, 2011.
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