Business

Indianapolis HMO closes shop

NEWS IN BRIEF — Posted Sept. 24, 2007

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M-Plan, the largest HMO in the Indianapolis area, says it is shutting down its HMO operations.

Even though the 125,000-member HMO reportedly had been profitable, executives said competing against larger plans had become increasingly difficult. The plan also said declining market interest in HMOs overall was another deciding factor.

The company is recommending that members enroll with WellPoint-owned Anthem when their current HMO coverage comes up for renewal, though Anthem is not buying M-Plan.

M-Plan is owned by The Health Group, an Indianapolis-based consortium of local hospital systems formed to run the plan. After it gets out of the commercial HMO business, its only product will be a 7,000-member Medicare plan.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2007/09/24/bibf0924.htm.

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