Health Plan of the Redwoods Announces Plans to Liquidate by Oct. 31
Health Plan of the Redwoods yesterday announced plans to liquidate and shut down by Oct. 31, which would leave 78,000 members of the Sonoma County health plan with only three months to find a new health insurer, the Santa Rosa Press-Democrat reports. Faced with an $8 million budget deficit since Jan. 1, HPR filed for federal Chapter 11 bankruptcy protection on May 31. HPR officials estimate that the health plan owes $38.7 million to creditors, which include local hospitals, physicians and other health care professionals (Allday, Santa Rosa Press-Democrat, 8/1). A committee that represents the creditors must approve the liquidation plan (Allday, Santa Rosa Press-Democrat, 8/1). HPR and the committee planned to recommend the liquidation plan this morning at a hearing in U.S. Bankruptcy Court in Santa Rosa, the Press-Democrat reports. Bankruptcy Judge Alan Jaroslovsky also must approve the liquidation plan (Allday, Santa Rosa Press-Democrat, 8/2).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.