News Headlines Article

Why the State’s Seizure of a Local Health Plan May Have Rescued It
California Healthline

It’s an unusual move, to lock out the people running a local health plan serving about 204,000 people, and to assume state stewardship of that plan. But that’s what the California Department of Managed Health Care and its director Shelley Rouillard did, just over one year ago in Alameda County in the East Bay. “We had to take it over in order to save it,” Rouillard said at the time. The action was pretty dramatic, with four administrators being relieved of their duties and escorted out of the office building one day. The move came amid allegations that the state monitor of the health plan stood to benefit from the seizure when it became the conservator of the plan, too.