"We don't have a signed agreement as yet," said State Insurance Commissioner Rey Graulty, hopeful that the deal would be sealed later today. "We've been working with them since last Thursday and there's been a lot of things they need to look at."

The state used its regulatory authority to take control of PGMA March 18 after numerous delays by the company in covering medical claims. PGMA, a low-cost medical insurance provider, has about 12,000 members.

Under the state's proposal, Queen's would absorb PGMA into its health care plan.

"It's a good move to bring somebody like Queens with the financial ability and expertise they have to provide confidence to the community," Graulty said.

PGMA once covered 26,000 people in the state. Membership fell to 12,000 when two state unions dropped it in a dispute over premiums.

Graulty last week installed a new management team at PGMA, including Michael Saccone of Peterson Consulting LLC. The company specializes in rehabilitating medical insurers.

Graulty said last week that PGMA "didn't seem to have the expertise needed to carry out an operation of this scope."