QMed, Inc. Announces HMO Insurance Application Approved In New Jersey
QMed, Inc. (Nasdaq: QMED - News) today announced that the State of New Jersey Department of Banking and Insurance has approved the Company's application to become a state licensed HMO insurer.
Michael W. Cox, QMed president and CEO said, "We are gratified to receive this New Jersey approval. It is an important development for our Company as it clearly furthers the strategic direction that we have pursued over the past several years. Significantly, it gives us the opportunity not only to grow our business on the top and bottom lines, but the opportunity as well to create a valuable asset for shareholders. This is a strategy we intend pursuing for 2007 as well as for 2008 Medicare business and beyond."
"As we've indicated previously, our initial objective has been not simply to operate, but also to own, a state licensed Medicare Advantage Special Needs Plan for the chronically ill in New Jersey. But even apart from creating such an asset, there are multiple reasons recommending this objective," he continued. "For example, in the several New Jersey county service areas we have applied for, the eligible Medicare population is nearly three and a half times that of South Dakota and the area can be traversed by car in under two hours. These are terrific operational advantages."
"Achieving that objective, of course, further depends on CMS' approving the Medicare SNP application for New Jersey that we submitted in March along with those for Florida and for an SNP expansion in South Dakota. Incidentally, the South Dakota SNP expansion, if approved, would take us into serving beneficiaries in that state who are dually eligible for both Medicare and Medicaid, in addition to the chronically ill in our current plan."
"While SNPs are an entirely new kind of regulated Medicare entity, our outlook continues optimistic both in terms of approvals and in terms of successful operation. Our early experience in South Dakota increases our confidence that SNPs represent a large and important business opportunity as well as being a critical part of Medicare reform. We intend to be part of it," Cox concluded.
About QMed, Inc.
QMed provides evidence-based clinical information management systems around the country to its health plan customers. The system incorporates Disease Management services to patients and decision support to physicians. The Company's QMedCare subsidiary specializes in serving high-risk populations of Medicare beneficiaries. Health e Monitoring is QMed's subsidiary offering weight, obesity and health promotion programs. The Company also operates a Medicare Demonstration to test the feasibility of reimbursing its care coordinated DM services in the vast Medicare fee-for-service program. More information on QMed, Inc. can be obtained at http://www.qmedinc.com, by calling (732) 544-5544 or by emailing email@example.com.
Except for historical information contained herein, matters discussed in this news release are forward-looking statements that involve risks and uncertainties. They include but are not limited to those relating to the timely implementation of programs, the impact of competitive product introductions, acceptance and pricing, and those risks detailed in the Company's filings with the Securities and Exchange Commission (SEC). Actual results may differ materially from any forward-looking statements due to these risks and uncertainties.
Source: QMed, Inc.