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Regulators fine LA Care Health Plan $55M for lapses in patient care

by City News Service • March 4, 2022

State health regulators announced Friday, March 4, they have fined L.A. Care, a health insurance plan for Los Angeles County’s neediest residents, $55 million for failing to ensure that patients have timely access to care, denying needed treatment and ignoring members’ complaints.

Although health plans are required to offer their members specialist appointments within 15 days, the average wait at L.A. County Department of Health Services facilities was 89 days following a referral from a primary care provider, according to an investigation by The Los Angeles Times.

The publicly operated health plan insures more than 2 million Medi-Cal patients and other low-income recipients. The fine is the largest such penalty in state history, outstripping the previous record fine of $10 million, according to The Times.

“The magnitude of L.A. Care’s violations, which has resulted in harm to its members, requires immediate action,” California Department of Managed Health Care Director Mary Watanabe and Department of Health Care Services Director Michelle Baass said in a joint statement. “Our investigations found several operational failures at L.A. Care, which have significantly impacted the health and safety of some of the state’s most vulnerable health care consumers. This action is necessary to protect the plan’s members, and to get L.A. Care to make serious changes to repair the plan’s operations.”

The two departments’ actions against the state’s largest Medi-Cal plan consists of a $35 million penalty from the DMHC and a $20 million sanction from the DHCS. Baass said that although L.A. Care cooperated with regulators’ investigation, “the scope and breadth of its violations indicate deep-rooted, systemic failures that threaten the health and safety of its members.”

Examples of harm to patients caused by authorization delays included a cancer patient’s health deteriorating, a plan member suffering extreme pain for over two weeks, and another cancer patient given a prognosis of six to nine months to live who left L.A. Care because of treatment delays, regulators said. The documented harm to the plan’s members demonstrate L.A. Care’s “failure to provide covered health care services in a timely manner,” authorities said.

In an emailed statement to The Times, L.A. Care officials acknowledged some of the deficiencies found by state regulators but said it took issue with the unprecedented fines, which it described as “unreasonable and not based on facts.” The backlog of grievances will be resolved this month and L.A. Care is working with the county Department of Health Services to bring them into “full compliance,” the statement read.

The statement described the fines as “arbitrary and unnecessarily punitive,” and said that L.A. Care will contest them, according to The Times.

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Filed Under: Health, Home

2 comments for "Regulators fine LA Care Health Plan $55M for lapses in patient care"

  1. Iconoclast says

    March 5, 2022 at 8:16 pm

    It is always comforting to know that it takes deaths of many patients and the pain and suffering of many, many more for the State to take action. Why wasn’t action taken earlier when members of the plan complained? Who was asleep at the wheel? There needs to be an investigation of the regulators and, if there is negligence on the part of the regulators, then heads should roll. Don’t just fine the healthcare provider and scratch your armpits, do something meaningful to correct the problem, too!

  2. Carolyn Rogers Navarro says

    March 5, 2022 at 6:11 pm

    LA Care has been doing this for years, they violated the rights of our adutt autistic daughter , we reported a company called Synermed in 2014 that was supposed to assist enrollees but was later verified to be blocking their care and access to doctors. We complained about Synermed and LA Care retaliated , they defended Synermed and would not help our daughter, would not acknowledge our grievances and messages! Our daughter ended up dying while I was trying to get help fron LA Care getting her seen by specialists, I came in person to LA Cares board meeting, instead of responding to me a board member publically claimed at a meeting without my knowledge that they resolved our complaints when they did not , my daughter died about a week after this meeting. LA Care keeps soliciting new members when they can’t take care of existing ones!

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