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Department of Insurance, Securities and Banking Puts Chartered Health Plan in Receivership

Friday, October 19, 2012

Department of Insurance, Securities and Banking Puts Chartered Health Plan in Receivership

 

Washington, D.C. —The District’s financial regulator petitioned the Superior Court today to take control of D.C. Chartered Health Plan, Inc., the company delivering health care to more than 110,000 low-income city residents. 
 
The court agreed and appointed the commissioner of the Department of Insurance, Securities and Banking to rehabilitate the company, authorizing him to continue operating Chartered and ensuring continued services to its Medicaid and D.C. Alliance enrollees and continued payment to medical providers and other vendors. 
 
The company’s board unanimously consented to the legal action, which will allow the commissioner to find a buyer and new capital while rehabilitating the company in receivership.
 
“I acted to protect the Medicaid and D.C. Healthcare Alliance members covered by Chartered,” said William P. White, commissioner of the Department of Insurance, Securities and Banking.  “We are working closely with the Department of Health Care Finance to ensure continued seamless service to Chartered’s enrollees. With a court order, we will work on a plan for the company to emerge from receivership as a viable concern.”
 
The commissioner and his consultants have been working closely with the company’s management and board for several months to determine if Chartered could resolve its financial issues.  
 
Chartered has yet to complete the audit of its 2011 financial results or raise additional capital through a new owner.  These efforts will continue while the company is in rehabilitation. 
 
There will be no interruption of services to Chartered’s Medicare and D.C. Alliance clients.  Patients will continue to receive care and health-care providers and other company vendors will continue to be paid while the company is in rehabilitation.
 
The department will hold a conference call for reporters today, Friday, Oct. 19 at 5:30 p.m.  To participate, contact Kate Hartig at Kathryn.hartig@dc.gov to RSVP and for dial-in information.