Health in­surer Health­Plus of Michi­gan will sell its Med­i­caid busi­ness to Molina Health­care

Modern Healthcare - - LATE NEWS -

in an at­tempt to sal­vage the en­tire com­pany, Health­Plus of­fi­cials said Fri­day. The Michi­gan Depart­ment of Fi­nan­cial and In­sur­ance Ser­vices sanc­tioned Health­Plus in March be­cause the in­surer was hem­or­rhag­ing mil­lions of dol­lars and did not have enough cash in re­serves to meet state re­quire­ments. The com­pany’s med­i­cal claims were con­sis­tently ex­ceed­ing pre­mium rev­enue as it at­tracted sicker-than-av­er­age mem­bers. That same month, the CMS also suspended Health­Plus from en­rolling new Medi­care Ad­van­tage mem­bers as a re­sult of not meet­ing state reg­u­la­tions. Health­Plus hopes di­vest­ing its Med­i­caid as­sets will al­low it to keep its doors open.

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