NU Online News Service, Dec. 3, 10:35 a.m. – Maxicare Health Plans Inc., Los Angeles, a managed care company, says its California health maintenance organization subsidiary has completed the sale of its California Medicaid contracts.
The subsidiary sold its contract for Los Angeles County, which covers 78,00 people, to Care 1st Health Plan, Alhambra, Calif.for $15 million, and its contract for the Sacramento area to to a subsidiary of Molina Healthcare Inc., Long Beach, Calif., for $900,000.
The enrollment for the Sacramento contract was not immediately available.
Maxciare announced an agreement to sell the Medicaid contracts in August.
Maxicare has been struggling for years, and its California HMO subsidiary filed for Chapter 11 bankruptcy protection May 25.
While Maxicare negotiated the sale of the Medicaid operations, it was also shutting down its California Medicare HMOs and winding down its commerical operations.
“Effective December 31, 2001, Maxicare will cease offering its commercial products and has begun to allow employer groups that wish to do so to terminate their contracts immediately,” the company says.