WASHINGTON -- Oxford Health Plans Inc. (OHP) said it
received and responded to a request for information from the New York State
Insurance Department regarding an alliance with Medco Health Solutions Inc.
(MHP).
        As reported, the Justice Department accused Medco Health Solutions of
paying an $87.4 million kickback to Oxford Health after it won a
pharmacy-benefits manager, or PBM, contract from the managed-care provider in
2001.
        In its annual report filed Wednesday with the Securities and Exchange
Commission, Oxford Health said no action has been filed or is pending against
the company in the federal investigation.
        Oxford Health denies the allegations in the complaint against Medco
and said it is cooperating with the investigation.
        The company also said it expects capital expenditures for 2004 to
fall in the range of $20 million and $30 million versus $14.7 million in
2003.  A significant portion of the 2004 estimated expenditures will be
devoted to management information systems, the filing said.
        Trumbull, Conn.-based Oxford Health provides health plans to
employers and individuals in New York, New Jersey and Connecticut through its
direct sales force, independent insurance agents and brokers.
-By Donna Hemans; Dow Jones Newswires; 202-862-1344;
donna.hemans@dowjones.com