DOVER, Del.--(BUSINESS WIRE)--Aetna Medicaid announced today that Delaware Physicians Care (DPCI) will not renew its contract to participate in the State of Delaware’s Medicaid and other assistance programs. As a result, DPCI will close its operations, effective December 31, 2014.
Aetna is reluctantly taking this action after several months of extended negotiations with the State, which have failed to result in a rate agreement that would cover the costs of operating the plan, said Aetna Medicaid President and Chief Executive Officer Pamela Sedmak. Members and providers are being notified; service will continue through the end of the year.
“We regret having to make this very difficult decision,” said Sedmak. “Delaware Physicians Care is an integral part of the fabric of the community, and an award-winning Medicaid plan that recently was recognized as one of the top Medicaid plans in the nation. Our extended, collaborative work with the State has resulted in a 10-year history of affordably providing access to quality care for Delawarean beneficiaries. Unfortunately, recent changes to the Medicaid landscape in Delaware are requiring the plan to absorb significantly higher levels of costs. Without payment rates that support our ability to continue to provide high-quality service to members, we cannot keep this great health plan open.”
Delaware Physicians Care will work with the State to deliver a smooth transition of its 137,000 members to another Medicaid plan.
Aetna is one of the nation's leading diversified health care benefits companies, serving an estimated 45 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com and learn about how Aetna is helping to build a healthier world. @aetna