State financial examiners have been looking over Maxicare's balance sheets since April 30. A medical survey also indicated problems with quality of care, particularly preventive care, Zingale said. As of early Friday afternoon, the health plan wasn't prepared yet to make a statement. Maxicare is known mostly for its Medi-Cal business. It has 7,700 members in the Sacramento Geographic Managed Care program, which serves poor residents.
Future action remains unclear.
If state action can get the company back in financial shape, it could continue to operate. If not, the business could be sold. If no buyer came forward, it could be shut. In that case, state regulators would oversee the transfer of patients to other health plans. Maxicare has lost money every year since 1996.