Medicare to Drug Plan Operator: You're Fired from MedPage Today

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By John Gever, Senior Editor, MedPage Today

Medicare has terminated its contract with a prescription drug plan operator handling some 123,000 beneficiaries in 21 states because it was improperly denying claims, the Centers for Medicare and Medicaid Services (CMS) announced.

The termination of Fox Insurance Co., based in New York City, is effective immediately, CMS said. The firm is not related to the Fox media conglomerate headed by Rupert Murdoch.

Beginning Wednesday, all beneficiaries enrolled in Fox plans can obtain their medications through LI-NET, a program run by Medicare and administered by Humana, according to CMS.

Fox enrollees will be able to choose a new Medicare prescription drug plan through May 1, 2010. Current enrollees who do not choose a plan will be enrolled into a new plan by Medicare.

CMS said the firm's denial of claims had "jeopardized the health and safety of enrollees."
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