Precis Inc. Subsidiary Announces Settlement Agreement with the California Department of Managed Health Care
September 27 2006 - 10:37AM
PR Newswire (US)
Company Aims to Expand Product Offerings in California GRAND
PRAIRIE, Texas, Sept. 27 /PRNewswire-FirstCall/ -- Precis, Inc.
(NASDAQ:PCIS), a leader in the development and marketing of
alternatives to traditional health insurance, today announced that
its subsidiary, The Capella Group, Inc., which does business as
"Care Entree", has entered into an agreement with California's
Department of Managed Health Care (DMHC) to settle Capella's
challenge to the DMHC's claim of jurisdiction over Capella's
discount healthcare programs. Under the terms of the agreement,
Care Entree will refrain from further challenges in the current
proceedings to the DMHC's claim of jurisdiction over Care Entree's
discount health program and will apply for a Knox-Keene Act
license. The DMHC, in turn, agreed that, should the DMHC issue a
regulation to regulate all discount programs in California, as the
DMHC has announced its intention to do, the requirements of that
regulation will supercede the Consent Agreement. Also, the DMHC has
dropped its demands for an immediate halt to Care Entree's business
operations in the state and agreed not to seek restitution
payments. According to Nicholas Zaffiris, Precis' Chairman, "Rather
than continuing to engage in a protracted disagreement with the
DMHC on Care Entree's behalf, we decided to devote our time and
resources to assisting the DMHC in developing a long-term
regulatory framework for the entire discount industry." Adds
Zaffiris, "With Precis' pending acquisition of Insuraco USA LLC, we
want to focus on growing our distribution channels. We look forward
to expanding our Care Entree discount plans and defined benefit and
insurance programs in the state of California, giving consumers a
wider range of healthcare options." About Precis, Inc. Precis, Inc.
and its subsidiaries provide affordable consumer driven health care
solutions as alternatives to traditional health insurance. The
companies market non-insurance health care savings programs, and
offer third party claims administration, provider network
management, and utilization management services for employer groups
that utilize partially self funded strategies to finance their
employee benefits. For more information on Precis and its
subsidiary Access Administrators, visit
http://www.precis-pcis.com/, and
http://www.accesshealthsource.com/, respectively. For more
information about The Capella Group d/b/a Care Entree and the
California DMHC, visit Precis' website and review the "Legal
Proceedings" section of its August 18, 2006 SEC filing of its Form
10Q for the quarter ended June 30, 2006. DATASOURCE: Precis, Inc.
CONTACT: Eliseo Ruiz, General Counsel of Precis, Inc.,
+1-972-343-6500; or Annemarie Marek of Marek & Company,
+1-469-235-2166 Web site: http://www.precis-pcis.com/
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