Ventura County’s Medi-Cal Plan in Strong Financial Position
CAMARILLO — As a continuing sign of its strong financial performance, Gold Coast Health Plan (GCHP) received approval from the state Department of Health Care Services (DHCS) to repay a $7.2 million line of credit to Ventura County.
“Gold Coast Health Plan is on much firmer financial ground today than it was back in 2012,” said Dale Villani, the Plan’s chief executive officer. “We needed the money during our start-up phase and we are grateful to the county for being a safety net for the Plan.” GCHP repaid the loan on Monday, March 28.
The county – at the direction of DHCS – issued a $7.2 million revolving line of credit to help the Plan meet the state’s required level of financial reserves, known as tangible net equity (TNE), which at the time was 8.5 million dollars. In October 2014, GCHP requested that the state allow payback of the loan; however, the request was put on hold by the state until an audit of GCHP’s finances was completed.
The Plan’s finances remain strong after repayment. As of February, the Plan had nearly $134 million in net assets, or more than 550% of the required amount – which is in line with the reserve levels of other managed care plans in the state, said Patricia Mowlavi, GCHP’s chief financial officer.
“Our goal is that Gold Coast Health Plan will be able to weather the next fiscal storm on its own – whether it’s prolonged delays in payments from the state or an increase in health care costs,” Mowlavi said. “We are funding our future.”
About Gold Coast Health Plan: Gold Coast Health Plan is an independent public entity created by a Ventura County ordinance and authorized through Federal Legislation. GCHP is not a county agency. The county Board of Supervisors approved implementation of a County Organized Health System (COHS) model, transitioning from fee-for-service Medi-Cal to managed care on June 2, 2009. The purpose of GCHP is to serve Medi-Cal beneficiaries, enhance the quality of health care, provide greater access, improve service and provide choice. The plan provides health benefits to nearly 204,000 beneficiaries throughout the county. To learn more about GCHP, visit: www.goldcoasthealthplan.org.