Maxicare Health Plan Negotiates to Sell California Managed Care Plans
Maxicare Health Plans Inc. is working to sell segments of its California managed care plans to several other insurers, the Los Angeles Times reports. Maxicare has been under state receivership since May 25 and is currently negotiating with potential buyers for its commercial HMO line and its Medicare+Choice plan. Maxicare disclosed its intention to sell off the businesses "piecemeal" in a June 8 Securities and Exchange Commission filing. Ivan Kallick, an attorney representing the Department of Managed Health Care, said that Maxicare recently disclosed in bankruptcy court that it has about $60 million in cash. Kallick added that "[o]perations are going smoothly" under the state conservator. Meanwhile, the Indiana Department of Insurance has filed a lawsuit against Maxicare alleging that the company failed to make "provisions to continue health benefits for enrollees" after discontinuing operations, despite saying it had done so. Indiana law requires managed care companies to provide contingency plans to continue health benefits for 60 days after pulling out of a market (Gellene, Los Angeles Times, 7/17).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.