May 25, 2001

Public Takes Over Maxicare to Protect 272,000 Californians' Health Care

Sacramento, CA - In an effort to ensure the continued health care of 272,000 California enrollees of Maxicare, a statewide HMO, the California Department of Managed Health Care took control of the health plan today because of concerns about its ability to provide quality services and about its financial solvency.

Under the Department’s action, a conservator will immediately be placed in control of the HMO, assess its condition and make a determination about its future business operations. The Department will work to ensure that California Maxicare enrollees do not see any disruption in service now and in the future.