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Chartered Health Says in Report to Court That It Is Working to Recoup Premiums It Is Owed, Repay Medical Providers

Tuesday, July 9, 2013

Chartered Health Says in Report to Court That It Is Working to Recoup Premiums It Is Owed, Repay Medical Providers

D.C. Chartered Health Plan Inc.’s special deputy rehabilitator today filed a fifth status report with the Superior Court for the District of Columbia overseeing Chartered’s receivership.  The report states the rehabilitator is working with the D.C. Department of Health Care Finance on the details of settling claims for retrospective premiums owed to Chartered under its former Medicaid contract.    
 
The rehabilitator also told the court Chartered will present a plan for making payments to medical providers whom Chartered owes more than $50 million. 
 
The rehabilitator also reported today that $12 million Chartered had pledged in 2008 to secure a loan to D.C. Health Systems Inc., Chartered’s parent company, had been seized by the bank when it declared the parent company in default.  Chartered has filed an action in the District of Columbia Superior Court against the parent company and its sole shareholder, Jeffrey E. Thompson, seeking recovery of the $12 million and other amounts. 
 
The report noted that the rehabilitator had marshaled assets of $10 million since Chartered’s contract with the District expired April 30.  This includes proceeds from the sale of Chartered’s assets to AmeriHealth Caritas, a leading managed care organization that has taken over the health care of Chartered’s clients without interruption of services.
 
Also: A Chartered financial statement attached to the status report shows losses of more than $6 million in the first quarter of 2013, pushing Chartered’s capital and surplus to negative $28.2 million.
 
A status conference on Chartered’s rehabilitation is scheduled for July 17 in Superior Court.
 
Chartered ran the largest Medicaid managed care organization in the city, responsible for the medical care of more than 100,000 poor city residents. The Department of Insurance, Securities and Banking put the company into receivership in October after it ran into financial problems. 
 
To view the status report and other related documents, visit disb.dc.gov/chartered