Durable Goods (Jun F) -9.4% vs 9.3% Prior, Ex-Trans 0.2% vs 0.2%
NeueHealth, Inc. (NYSE:NEUE) has entered into modified repayment agreements with the Centers for Medicare & Medicaid Services (CMS), according to a recent 8-K filing. The insurance subsidiaries of NeueHealth in Colorado and Florida have agreed to new terms concerning their risk adjustment obligations, which total $271.8 million.
The modified agreements, dated March 13, 2025, extend the repayment period to 36 months from the original installment date of September 15, 2023. The outstanding balance will accrue interest at a rate of 11.5% per annum. Under the terms, NeueHealth is required to make monthly payments of $1,000 and may be obligated to pay additional balloon payments upon a 30-day notice from CMS. Additionally, CMS may receive a specified percentage of surplus funds from any affiliated insurance company under certain conditions. With total debt of $136.87 million, InvestingPro analysis shows the company operates with a moderate debt level.
Should NeueHealth fail to meet the terms of these agreements or enter into liquidation or rehabilitation, the full balance owed would become immediately due and payable. The details of the letters of agreement and the modified repayment agreements will be filed with the SEC and included in the company’s quarterly report for the period ending March 31, 2025.
The announcement follows the company’s previous disclosure on December 23, 2024, of a merger agreement with NH Holdings 2025, Inc., which is indirectly controlled by investment funds affiliated with New Enterprise Associates, Inc. (NEA). The merger, pending satisfaction of conditions and regulatory approvals, would result in NeueHealth becoming a wholly-owned subsidiary of NH Holdings.
Investors and security holders are encouraged to read the proxy statement and other relevant documents filed with the SEC carefully, as they contain important information about the transaction. The information in this article is based on a press release statement.
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