Compelo Insurance is using cookies

We use them to give you the best experience. If you continue using our website, we'll assume that you are happy to receive all cookies on this website.

ContinueLearn More
Close
Dismiss

Merrill Lynch to manage surplus funds for Phyhealth pilot HMO

Physicians Healthcare Management Group, a developer of health maintenance organizations in partnership with physicians, has finalized an agreement with Merrill Lynch's Lloyd Lapointe Group to manage the investments of Phyhealth Plan Corporation, Phyhealth's pilot HMO.

Under the agreement, Merrill Lynch will manage the initial $2.5 million capital surplus plus any additional surplus required to meet state regulations on an ongoing basis, subject to Florida state regulations governing qualified investments for health maintenance organizations (HMO).

The $2.5 million capital surplus, to be managed by Merrill Lynch, is held in Phyhealth Plan Corporation, a Phyhealth subsidiary formed in September 2007, which was established in accordance with Florida insurance regulations and standard industry practice to qualify as the applicant for the HMO Certificate of Authority.

Robert Trinka, CEO of Phyhealth, said: We believe Merrill Lynch have both the knowledge and experience necessary to ensure that these funds are managed to earn the highest rate of return, while complying with National Association of Insurance Commissioner’s guidelines and Florida state regulations.