<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): OCTOBER 2, 1998
OXFORD HEALTH PLANS, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-19442 06-1118515
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
800 Connecticut Avenue, Norwalk, Connecticut 06854
(Address of principal executive offices) (Zip Code)
(203) 852-1442
(Registrant's telephone number, including area code)
1
<PAGE> 2
ITEM 5. OTHER EVENT.
The Company's Press Release, dated October 2, 1998, is attached as an
Exhibit hereto and is incorporated herein by reference.
ITEM 7. Financial Statements and Exhibits
(c) Exhibits
99(a) Press Release, dated October 2, 1998
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
OXFORD HEALTH PLANS, INC.
Date: October 5, 1998 By: /s/ KURT B. THOMPSON
-----------------------
Kurt B. Thompson
Principal Accounting Officer
2
<PAGE> 3
OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
EXHIBIT INDEX
Exhibit Page
Number Description of Document Number
- ------ ----------------------- ------
99(a) Press Release dated October 2, 1998 4
3
<PAGE> 1
EXHIBIT 99(a)
FOR IMMEDIATE RELEASE
CONTACT: Nicole Reilly
212-885-0353
-or-
Madeline Hardart
212-885-0417
OXFORD ANNOUNCES MEDICARE ACTION PLAN
OXFORD TO EXIT SMALL PORTION OF MEDICARE MARKET
NORWALK, CT, October 2 - Oxford Health Plans (NASDAQ: OHXP) announced today its
Medicare action plan, following a successful site visit by the Health Care
Financing Administration (HCFA), the federal agency that administers the
Medicare Program. The agency has accepted Oxford's corrective action plans,
clearing the way for the Company's continued participation in the Medicare
program in 1999.
HCFA's review earlier this month was a follow-up to a February on-site review of
Oxford's operations. In June, Oxford voluntarily suspended marketing and most
enrollment of new members under its Oxford Medicare Advantage Plans in New York,
New Jersey, Connecticut and Pennsylvania in order to strengthen its operations
and initiate certain corrective actions required by HCFA.
"Last month, we announced Medicare arrangements with leading providers in Long
Island and New Jersey, which underscores our commitment to continue
participation in this important program," said Norman C. Payson, M.D., Oxford's
chief executive officer. "Today, we are pleased to be able to continue offering
our Medicare plan in areas serving the vast majority of our members. We're also
extremely pleased that HCFA's thorough review found substantial improvements in
our core operations." The Company noted that HCFA will continue to monitor its
operations to ensure that Oxford continues to comply with its corrective action
plans and improve operating performances in key areas, including claims
turnaround.
Oxford's Medicare service areas in 1999 will consist of 21 counties, where the
health plan has approximately 129,000 members or 83 percent of its existing
Medicare members. In New York, Oxford will continue to offer its Medicare
Advantage Plan in seven counties: Bronx, Kings, New York, Queens, Richmond,
Nassau and Suffolk. In New Jersey, Oxford will continue to offer its Medicare
Advantage Plan in 13 counties: Bergen, Burlington, Camden, Essex, Hudson,
Mercer, Middlesex, Monmouth, Morris, Ocean, Union, Somerset and Passaic. In
Connecticut, Oxford will continue to offer its Medicare Advantage Plan in New
Haven county.
Oxford also announced today that it will exit the Medicare program in other
counties, which represent approximately 26,500 members or 17 percent of Oxford's
Medicare membership. In recent years, Oxford's costs for delivering healthcare
to Medicare members in these counties have increased significantly, causing the
Company to realize substantial underwriting losses. In New York, Oxford will
exit the Medicare market in Westchester, Orange, Putnam and Rockland counties.
In New Jersey, it will exit the Medicare market in Atlantic, Warren, Cape May,
Cumberland, Gloucester, Hunterdon, Salem, Sussex and Warren Counties. In
Connecticut, it will exit the Medicare market in Fairfield, Hartford,
Litchfield, New London, Tolland and Windham counties. In Pennsylvania, Oxford
will exit Philadelphia, Bucks, Chester, Delaware and Montgomery counties.
4
<PAGE> 2
"Restructuring the Company's Medicare program is an important part of our
overall turnaround plan. We recognize that the unique characteristics of the
Medicare population require different healthcare management strategies," Dr.
Payson said. "In some areas, we are unable to continue offering our Medicare
plans without significant involvement of hospital and physician groups in the
provision and management of care for our members. We have worked tirelessly to
solicit that involvement and have largely been successful. However, in counties
representing about 17 percent of our membership where these arrangements could
not be completed, we have made the difficult decision to exit the business."
Current members in the counties Oxford is exiting will have several options:
- - They can remain with Oxford through the end of 1998 and automatically
be transferred back to regular Medicare effective January 1, 1999.
- - They can opt to disenroll from Oxford Health Plans and return to
regular fee-for-service Medicare any time between now and the end of
the year. Members who want to purchase a Medicare supplemental
("Medigap") health insurance policy will be given a list of carriers
that offer supplemental coverage.
- - They can decide to join another HMO or competitive medical plan in
their area that contracts with Medicare.
Until disenrollment is effective, all Oxford members must continue to use Oxford
Health Plans providers. Oxford will work to ensure a smooth transition and
continuity of care for affected members and has a toll-free number to take phone
calls from Medicare members who have questions. The number is 800-234-1228.
Oxford Health Plans, Inc. is based in Norwalk, Connecticut. The product lines of
its subsidiaries include traditional health maintenance organizations,
point-of-service plans, third-party administration of employer funded benefit
plans, Medicaid and Medicare plans and dental plans. Oxford markets its health
plans to employers in several states through its direct sales force and through
independent insurance agents and brokers.
# # #
5
