Facing declining enrollment, Inter Valley Health Plan will cease operations at the end of 2022, the Daily Bulletin reported Nov. 7.
The Pomona, Calif.-based payer offered Medicare Advantage plans. According to its website, the plan had over 15,000 members in Los Angeles, San Bernardino, Riverside and Orange counties in California.
"When it came time to renew our contract with Medicare, it became clear that in today's highly competitive Medicare environment, we would not be able to continue to provide the high-level of benefits and service that you, our members, deserve," the payer said in a message to members.
Members were informed of the decision to end operations in October. They are being asked to choose a new plan through Medicare open enrollment.
Inter Valley Health CEO Michael Nelson told the Daily Bulletin the small payer could not compete with plans with millions of members.
"Ultimately, the company decided that an orderly wind down of operations would be necessary and prudent," Mr. Nelson said.
Inter Valley Health Plan has around 115 employees at its Pomona headquarters. Around 25 will transfer to the plan's affiliated health system, Pomona Valley Hospital Medical Center, the newspaper reported.