CMA: Makes Deal With Insurer On California Advantage
"The Doctors' Co., a medical malpractice insurer based in Napa, has agreed to provide long-term financial backing to California Advantage," the "California Medical Association's fledgling health plan." The Sacramento Business Journal reports that in exchange, California Advantage will help the medical malpractice insurer "market professional liability coverage to" its doctors. Although financial terms were not disclosed, California Advantage CFO Tom Hamilton "called the deal a 'long-term, performance-based package.'" California Advantage had "considered a number of insurer-partners before selecting The Doctors' Co. for its historic commitment to physician advocacy, the Sacramento Business Journal reports. "We believe the long-term success of California Advantage will complement the business goals of the Doctors' Co.," said TDC president Manuel Puebla.
A Good Match
"California Advantage could use some stability," the Sacramento Business Journal reports. CEO Ken Reuter is the health plan's third leader in less than a year, and it "has only 7,000 enrollees, far below Hamilton's projections of 25,000 to 30,000 needed to break even." However, Reuter says he "sees great promise in the new California Health Family program," and that the plan is "preparing a bid to provide care in 15 to 20 of the state's 58 counties." Hamilton said, "This offers tremendous potential for us. The new business, alone, will make a big difference if we are fortunate enough to get a contract" (Robertson, 1/26 issue).