The Washington state insurance commissioner’s office is conducting a retroactive review of a 2-year-old health plan acquisition.
The investment firms that acquired Arcadian Health Plan Inc., Spokane, Wash., and its corporate parent failed to seek or obtain approval for the deal from Washington insurance regulators, according to officials in the office of Washington state Insurance Commissioner Myron Kreidler.
The officials will hold a hearing on the deal Sept. 7.
Arcadian Health Plan’s parent company, Arcadian Management Services Inc., Oakland, Calif., runs Medicare Advantage managed care plans in 8 states.
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The investment firms, affiliates of Morgan Stanley, New York, and Three Arch Partners, Portolo Valley, Calif., paid about $19 million in August 2005 to turn a significant stake in Arcadian Health Plan’s parent, Arcadian Oakland, Calif., into a controlling stake, officials report in the hearing notice.