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Rehabilitator for DC Chartered Health Releases Fourth Status Report

Friday, May 17, 2013

Rehabilitator for DC Chartered Health Releases Fourth Status Report

*** The Department of Insurance, Securities and Banking will hold a 3 p.m. press conference via telephone today, May 17. The conference is open to the public, although only press may ask questions. To participate, contact Kate Hartig at kathryn.hartig@dc.gov to RSVP and for dial-in information. Related documents are at disb.dc.gov/chartered ***


Special deputy to the rehabilitator of DC Chartered Health Plan Inc., Daniel L. Watkins, released this statement today:

DC Chartered Health Plan Inc.’s special deputy to the rehabilitator today filed his fourth status report in DC Superior Court. The report noted that provider claims of approximately $35 million have been processed but not paid as of May 10. Chartered estimates $25 million remains in incurred but not reported claims with an additional $35 million in disputed claims in arbitration with MedStar’s Washington Hospital and Georgetown University Hospital.

As in prior status reports, the special deputy said the rehabilitator is seeking recoveries from Chartered’s parent company, DC Healthcare Systems Inc., and its shareholder. The potential recoveries relate to $14 million in loan collateral, several million dollars in income-tax refunds and approximately $1 million in undocumented related-party transfers.

The rehabilitator is also seeking approximately $60 million from the District and the federal Centers for Medicare & Medicaid Services for retrospective premiums claimed under Chartered’s now-expired Medicaid contract. The claims are currently pending at the Department of Health Care Finance.

On April 30, Chartered closed an asset-purchase agreement with AmeriHealth District of Columbia and transitioned its enrollees, provider network and employees to AmeriHealth. AmeriHealth entered into a Medicaid managed-care contract with the Department of Health Care Finance effective May 1. Chartered remains responsible for provider claims incurred on or before the April 30 transaction, with AmeriHealth responsible for provider claims incurred on and after May 1.

Chartered’s special deputy reported approximately $16 million in cash assets, including $5 million from AmeriHealth for the asset sale and $3.5 million in routine payment adjustments from the Department of Health Care Finance.

The status report set out fees and expenses of the rehabilitation for the special deputy; legal counsel to the rehabilitator; and a financial advisor in carrying out the rehabilitation. Those fees have averaged approximately $465,000 a month during the six-month rehabilitation period from October 19 through April 30.

For more information, visit disb.dc.gov/chartered