Mississippi Commissioner of Insurance George Dale announcedMonday a $2.2 million distribution of funds from an HMO taken overby the state in 2000 – $630,000 of which with go to the stateMedicaid program.

The Mississippi Managed Care Network Inc. was taken over by theInsurance Department because of alleged mismanagement and financialconcerns.

“At the time that we took control of the HMO, there were notenough funds to pay the outstanding insurance claims.” Dalesaid.

Dale said his office has successfully pursued claims againstformer officials of MMCN over the operation of the network. Thedepartment recently settled litigation against the officers and cannow make distributions to claimants.

For most providers, these payments will be the seconddistribution they have received and will constitute 100 percent oftheir approved claims.

Dale said as part of this distribution he will be presenting acheck to Medicaid for approximately $630,000 – money owed toMedicaid by MMCN. Dale said he was glad to help Medicaid and hopesthe program will be able to use the money to obtain additionalfederal matching funds.

“It is my understanding that the federal government will match 4to 1 which means these funds could result in an additional $2.52million to the state Medicaid program.” Dale said.