Background & History

Metropolitan Health Networks, Inc. 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 with a health plan in 1999. In 2000, an additional contract was secured to manage all of the health plan’s Medicare Advantage lives in the Daytona, Florida area (Flagler and Volusia Counties). Under its risk agreements, Metcare of Florida, Inc., our Provider Services Network (“PSN”) arm, receives credit for a significant percentage of the monthly Medicare premiums received by the health plan 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 twelve Florida counties and is now marketing its “AdvantageCare”-branded health plan.