California state officials ordered Golden State Medicare Health Plan to break all existing contracts with clients by June 1, with Medicare coverage ending August 1, according to the San Luis Obispo Tribune.
A settlement agreement in February between the state and the health plan resulted in the loss of the payer's Medicare license because it did not maintain good financial standing. In December, the payer had an operating deficit of around $35 million.
"Given (Golden State Medicare Health Plan)'s dire financial condition and its clear inability to operate its business in a manner to allow it to comply with even the minimum financial requirements of all (state) licensees, revocation of (its) health plan license is appropriate and urgent," according to a July 2021 court filing against the payer.
As of April 2021, Golden State had about 4,966 clients throughout eight California counties.