AmeriHealth Mercy wants to buy Medicaid provider Chartered Health Plan, paying $5 million for certain assets of the embattled Washington, D.C.-based health insurer.
The deal won't be a wholesale purchase since AmeriHealth only wants to assume ownership of Chartered's name, intellectual property and provider contracts. What AmeriHealth doesn't want to inherit, in particular, is Chartered's $45 million in outstanding medical claims that providers will submit after the purchase, reported the Washington Business Journal.
Although Chartered has been accused of financial irregularities and Washington, D.C. officials took over the company last October, it has remained the city's dominant Medicaid contractor and popular brand in the market with roughly 110,000 members, The Washington Post reported.
"The agreement would prevent serious disruption for Chartered's enrollees, address the interests of Chartered's employees and provide funds that will help Chartered satisfy its liabilities," said Dan Watkins, the city-appointed head of the company.
AmeriHealth also said it would invest $30 million into Chartered, according to a Washington Examiner article.
By purchasing Chartered Health Plan, AmeriHealth could boost its Medicaid position in the Washington, D.C. area, where it already filed a bid to enter into the market. The deal still requires a judge's approval.