Calif. Seizes Failing Health Insurance Provider
By Matt O'Brien and Rebecca Parr, Contra Costa Times | |
McClatchy-Tribune Information Services |
As more Californians fall under
But the financial problems of the
Both sides now await a ruling that could come as early as this week by an
"The crisis is not simply a matter of bookkeeping woes," said a court memo by
The state earlier this month named
"A conservatorship is absolutely the last step, but we need to make sure the enrollees continue to receive quality care," said
State officials also recently fired Alliance CEO
Lamirault did not return a phone call made to her home Tuesday.
Abernathy said in court documents that
"The Alliance has no controls over its spending," he wrote. He wrote that Alliance increased staffing faster than membership growth, and spent more on furniture, equipment and software than comparable providers.
"The Alliance is top heavy in leadership and is also heavily staffed for the size of its membership," he wrote.
Alliance attorneys fired back last week, accusing the state of "railroading their governmental agency into a loss of local control based on the recommendation of the
Because the consulting group knew it would be tapped for the conservator job if the
Founded in 1996, the
"Let me stress: No care has been impacted, nor do we anticipate anyone under the plan being impacted," said
He blamed a combination of factors, including problems with the new mandated computer system, a huge number of new members in January and underpayment by the state for care of seniors with disabilities.
Several other board members declined or could not be reached for comment Tuesday, including chairwoman
___
(c)2014 the Contra Costa Times (Walnut Creek, Calif.)
Visit the Contra Costa Times (Walnut Creek, Calif.) at www.contracostatimes.com
Distributed by MCT Information Services
Wordcount: | 812 |
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News