MIAMI, FL, Dec. 13, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Novus Acquisition and Development, Corp. (OTC Markets: NDEV), through its wholly owned subsidiary WCIG Insurance Services, Inc., is a diversified insurance entity in health, liability, annuity and accident, and, the nation’s first carrier/aggregator offering a cannabis health plan, today announced its plans to file as an Health Maintenance Organization (HMO) in the State of California.
Novus Cannabis MedPlan had a positive initial teleconference with the California Department of Managed Health Care (CDMH) regarding filing its Cannabis MedPlan as a Health Maintenance Organization (HMO). Additional follow up reviews and evaluations by CDMH beginning as early as January 2019.
Novus as an HMO will expand its breadth as health insurance carrier through its developed network of provider(s) such as:
· Physicians (for example, family doctors that write cannabis recommendations),
· Specialists (for example, oncologists and ophthalmologists that recommend cannabis) and,
· Med facilities (for example, clinics and cannabis dispensaries/cultivators)
Novus Cannabis MedPlan will initiate as an HMO where it will agree to pay cannabis providers specific levels of compensation for a range of services they provide to its patient/members commencing in the State of California. In return for a monthly fee, or premium, patient/members are granted access to providers inside Novus’ cannabis network at no additional cost.
The value add of this premium structure is three-fold:
· Patients: Reduce healthcare costs with likely reimbursement of cannabis meds and services for patient/members.
· Providers: As an HMO cannabis network providers benefits by supplying them with more patients.
· Employers: Growing interest in Novus Cannabis MedPlan by many Professional Employment Organizations that want to integrate THC and CBD Plans for their client base in an HMO format.
Novus’ Chief Executive Officer Frank Labrozzi, stated, "This is an unprecedented opportunity for Novus and for the cannabis industry to be permitted by the CDMH to file as an HMO that includes cannabis as a benefits package. Since Novus announced it would begin its business model in an ever-evolving cannabis healthcare landscape, we believe we are seizing an opportunity by disrupting the old healthcare model that pits insurers against providers and instead of working directly with them to offer complete integrated care experience. Novus Cannabis MedPlan is the next generation of healthcare that will do away with the annoyance that many of us have experienced in getting traditional and cannabis related healthcare services.”
As progress is made Novus will keep shareholders updated of its filing as it transpires.
Novus Acquisition & Development Corp. (NDEV), through its subsidiary WCIG Insurance, provides health insurance and related insurance solutions within the wellness and medical marijuana industries in states where legal programs exist. Novus has developed its infrastructure within many lines of the insurance business such as, health, property & casualty, life, accident and fixed annuities.
Novus medical cannabis benefits package will work as outside developers and will not cultivate, handle, transport grow, extract, dispense, put up for sale, put on the market, vend, deliver, supply, circulate, or trade cannabis or any substances that violate the United States law or the Controlled Substances Act, nor does it intend to do so in the future and will continue to follow state and federal laws. The statements made about specific products have not been evaluated by the United States Food and Drug Administration (FDA) and are not intended to diagnose, treat, cure or prevent disease. All information provided on these press releases or any information contained on or in any product label or packaging is for informational purposes only and is not intended as a substitute for advice from your physician or other health care professional. Once a push notification is competed the transaction is solely between the state-licensed dispensary and the registered patient.
The state laws are in conflict with the federal Controlled Substances Act. The current administration has effectively stated that it is not an efficient use of resources to direct federal law enforcement agencies to prosecute those lawfully abiding by state designated laws, allowing the use and distribution of medical marijuana. However, there is no guarantee that the current administration, nor any future administration, will not change this policy and decide to enforce the federal laws strongly. Any such change in the federal government's enforcement of current federal laws could cause significant financial changes to Novus Medical Group. While we do not intend to harvest, distribute or sell cannabis or cannabis related products, we may be harmed by a change in enforcement by federal or state governments.
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· For NDEV Financial Filing: https://www.otcmarkets.com/stock/NDEV/filings
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This release includes forward-looking statements, which are based on certain assumptions and reflects management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success; the level of expenditures necessary to maintain and improve the quality of services; changes in the economy; changes in laws and regulations, includes codes and standards, intellectual property rights, and tax matters; or other matters not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. Novus disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Chairman and CEO