Bankruptcy Court Approves Sale of Maxicare Medi-Cal Plan to Molina Healthcare

Molina Healthcare of California has agreed to accept Maxicare's Sacramento Medi-Cal contract, a move that will affect 8,000 beneficiaries. Earlier this month, the U.S. Bankruptcy Court approved the transfer, which is scheduled to take place Dec. 1. The Department of Health Services has been working with Molina, which currently covers 200,000 Medi-Cal and Healthy Families beneficiaries, to ensure continuity of care for Maxicare members. Molina is working on plans to allow Maxicare members to remain with their current providers (Molina release, 10/15). Maxicare has been under state receivership since May 25, when the Department of Managed Health Care seized control of the financially ailing managed care company. Maxicare has been working to sell segments of its California managed care plans to several other insurers. Last month, U.S. Bankruptcy Judge Vincent Zurzolo approved the $15 million sale of Maxicare's Los Angeles County Medi-Cal business to Alhambra-based Care First (California Healthline, 9/28).