AmeriHealth to take over a Medicaid program in D.C.

Posted: April 05, 2013

AmeriHealth Mercy Family of Cos., of Philadelphia, received final approval Friday to take over the operations of the financially troubled DC Chartered Health Plan Inc., which managed Medicaid benefits for about 100,000 Washington residents.

The deal calls for AmeriHealth Mercy, which is majority owned by Independence Blue Cross, to pay $5 million for certain assets of DC Chartered and to provide $30 million in capital to AmeriHealth District of Columbia, a new AmeriHealth subsidiary.

The sale was approved by a Washington Superior Court judge in March. Washington's Department of Health Care Finance on Friday set May 1 as the date AmeriHealth would take over the largest of three Medicaid managers in the nation's capital.

"It is a privilege to be given the opportunity to work closely with community organizations and providers to meet the health care needs of the underserved and chronically-ill living in this vibrant community," Michael A. Rashid, president and chief executive officer of AmeriHealth Mercy, said.

DC Chartered's contract expires June 30. AmeriHealth is one of three companies under consideration for a new five-year contract starting July 1.

The Medicaid business is currently split between three companies and will be as well during the next five year period starting July 1, according to Dorinda White, of the Washington department that oversees Medicaid.

That makes it likely that AmeriHealth will retain the business after July 1.


Contact Harold Brubaker at 215-854-4651 or hbrubaker@phillynews.com.

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