In the market for a Medicaid plan? D.C. Chartered Health Plan, which is the largest Medicaid plan in Washington, DC, with 110,000 members, has been placed in receivership by District insurance regulators pending a sale of the company.
The proximate cause: failure to meet a 90-day deadline issued by the DC Dept. of Insurance in June instructing the company to raise capital or find a buyer in light of a 2011 loss of $15 million.
It probably doesn’t help that the home of D.C. Chartered’s owner Jeffrey Thompson was raided by federal agents in April as part of a city campaign finance investigation. Furthermore, an ongoing audit of D.C. Chartered’s books has turned up financial irregularities. In short, what we have here is a mess.
Regulators say there will be no interruption to coverage for plan members. D.C. Chartered’s five-year Medicaid contract with the district expires in 2013, when the district expects to have completed a rebid for the entire contract. Other Medicaid plans serving D.C. include UnitedHealth and MedStar.