Background & History

Metropolitan Health Networks, Inc. ("Metcare") was incorporated in the State of Florida in January 1996, and began operations as a physician practice group. During the late 1990’s, Metropolitan acquired a number of physician practices and ancillary service providers.

The first managed care risk contract was secured in South Florida with Humana in 1999. In 2000, an additional contract was secured to manage all of Humana's Medicare Advantage lives in the Daytona, Florida area (Flagler and Volusia Counties). Under its risk agreements, Metcare receives a significant percentage of the monthly Medicare premiums received by Humana from the Centers for Medicare and Medicaid Services ("CMS") and is obligated to provide all of the covered healthcare benefits for the members.

In December 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the "Medicare Modernization Act" or "MMA") was signed into law, which, among other changes, significantly increased funding for the Medicare Advantage program beginning in 2004. The MMA legislation is intended to significantly increase membership in the Medicare Advantage program over the next several years.

In May 2005, METCARE Health Plans, Inc. ("MHP"), a wholly owned subsidiary of Metropolitan, received approval to commence operations as a Medicare Advantage health plan effective July 1, 2005. This business has been launched in thirteen Florida counties and is now marketing its "AdvantageCare"-branded health plan.

This business was sold to Humana in August 2008. In connection with the sale, Metcare contracted with Humana to continue providing care to Advantagecare members.