TRIPLE-S MANAGEMENT CORPORATION (NYSE:GTS) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.
On June 30, 2017, Triple-S Salud, Inc., a Puerto Rico insurance company (“Triple-S”) and managed care subsidiary of Triple-S Management Corporation (the “Company”), amended its contract (the “Amendment”) with the Puerto Rico Health Insurance Administration (“ASES”, by its Spanish acronym) for the offering of health care services for the Medicaid subscribers in the Metro North and West regions of the Government of Puerto Rico’s health insurance program, known as the Government Health Plan (the “Contract”). The Company announced the entry into the Contract under Item 1.01 of a Current Report on Form 8-K dated February 9, 2015.
The Amendment extends the term of the Contract for a three-month period ending on September 30, 2017 (the “Extension Period”), while the parties conclude the negotiations for the renewal of the Contract for the remaining one year term ending on June 30, 2018 (the “Renewal Period”). The Amendment also increases the fees that Triple-S will receive from ASES under the Contract during the Extension Period and Renewal Period. For the services provided during the Extension Period and Renewal Period, Triple-S will receive $183.38 per member per month (“PMPM”) for the Metro North Region and $148.99 PMPM for the West Region of the Commonwealth of Puerto Rico (the “New PMPM Payments”). The New PMPM Payments remain subject to the approval of the Centers for Medicare & Medicaid Services (“CMS”). During the Extension Period, ASES will continue to pay the current PMPM until CMS approves the New PMPM Payments. Upon CMS’ approval, ASES will pay the cumulative difference between the current and the New PMPM Payments for the period between July 1, 2017 and the date of CMS’ approval. If the parties are unable to conclude the negotiations for the Renewal Period by July 31, 2017, Triple-S will have the option not to renew the Contract for such period. All other provisions of the Contract will remain in full force and effect during the Extension Period.
The foregoing summary of the terms and conditions of the Amendment is subject to, and qualified in its entirety by, the full text of the Amendment which will be filed with the next periodic filing under the Securities Exchange Act of 1934, as amended.
Item 8.01 Other Events.
On July 5, 2017, the Company issued a press release announcing that Triple-S Salud, Inc., subsidiary of the Company, reached an agreement for a three-month extension of its contract with the Puerto Rico Health Insurance Administration (“ASES”, by its Spanish acronym) for the offering of health care services for the Medicaid subscribers in the Metro North and West regions of the Government of Puerto Rico’s health insurance program. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) The following item is filed as an exhibit to this report:
TRIPLE-S MANAGEMENT CORP ExhibitEX-99.1 2 ex99_1.htm EXHIBIT 99.1 Exhibit 99.1 Triple-S Management Corporation 1441 F.D. Roosevelt Ave. San Juan,…To view the full exhibit click here
About TRIPLE-S MANAGEMENT CORPORATION (NYSE:GTS)
Triple-S Management Corporation operates as a managed care company. The Company offers a range of managed care and related products in the commercial and Medicare markets. The Company’s segments include Managed Care, Life Insurance, and Property and Casualty Insurance. The Managed Care segment is engaged in the sale of managed care products to the Commercial, Medicare and Medicaid market sectors. The Life Insurance segment offers life and accident and health insurance coverage, and annuity products. The premiums for this segment are mainly subscribed through an internal sales force and a network of independent brokers and agents. The insurance lines of business of Property and Casualty Insurance segment are commercial multiple peril, auto physical damage, auto liability, and dwelling. It also offers complementary products and services, including life insurance, accident and disability insurance and property and casualty insurance.
