It’s official. The U.S. District Court for the District of Kansas has entered a consent order appointing Receivership Management Inc. – a Tennessee-based independent fiduciary – to serve as claims administer and oversee the employee benefit plans and assets previously administered by Medova Healthcare Financial Group.
The appointment of an independent fiduciary is in response to the U.S. Department of Labor’s (DOL) complaint against Medova Healthcare Financial Group in December of last year. The complaint alleged a significant misuse of plan assets across at least 2,600 participating health plans serving more than 35,000 employees in 38 states. The complaint also alleged Medova’s misuse of funds created a critical funding deficiency of their Lifestyle Health Plans, asking the court to require Medova to release all profits and fees and other monies earned in connection with their violations.
Per the Recent U.S. Department of Labor News Release:
Receivership Management Inc. will work to negotiate and pay outstanding health claims for participants of the arrangement.
They will serve until the legal action prompted by the complaint against Medova is resolved or their services are found to be no longer necessary.
This situation has left many with questions and concerns about how to protect their business and employees. While Simpara does not market nor sell Medova health plans we know many employers will be seeking alternatives to secure their health benefits. Please complete the form below if you wish to speak with one of our advisors.
Medova Lifestyles Health Plan participants with unpaid medical claims may call 615-370-0051.
Note: while Medova is complying with the court order, they continue to contest these allegations.
