Foundation Health Systems is selling the Medicaid portion of its health plan business in Washington state and transferring its commercial business there to two other insurers.
The moves are part of Foundation's restructuring plans, aimed at whittling the company's operations to select states.
Foundation is selling the 60,000-enrollee Medicaid part of its QualMed Washington Health Plan to American Family Care, a Long Beach, Calif.-based managed-care company that specializes in Medicaid plans.
Terms of the sale, which is subject to approval by the Washington insurance department, weren't disclosed. Officials at Woodland Hills, Calif.-based Foundation and American Family declined to predict when the sale would close.
Under separate agreements, Foundation's 64,000 commercial enrollees in western Washington can transfer to PacifiCare of Washington, and its 33,000 commercial enrollees in the eastern part of the state can shift to Premera Blue Cross. The voluntary shifts are expected to happen by April 30, 2000. Agreement terms were not disclosed.
Foundation's restructuring elsewhere has led to the sale of or agreements to sell plans with 152,000 enrollees in Colorado, Louisiana, New Mexico, Oklahoma, Texas and Utah. The company intends to keep operations in Arizona, California, Connecticut, Florida, New Jersey, New York and Oregon. Foundation has about 6 million total enrollees.