A Southern California insurance company’s financial woes are sending thousands of seniors in Santa Clara and San Joaquin counties scrambling for health care coverage amid the ongoing coronavirus pandemic.
More than 10,000 people in the two counties enrolled in Vitality Health Plan’s Medicare Advantage option — insurance that provides expanded Medicare coverage — after it began serving the area in January 2019, attracted by good benefits and promises of inexpensive medication. But for many, the company’s offerings turned out to be too good to be true.
“If my parents were on the plan, I would move them,” said Patricia Salas, president of SBHIS Insurance Services, a company that enrolled elderly residents in Vitality’s supplemental Medicare plan and is now hustling to help them find alternatives.
The main issue is Vitality’s dire financial situation. The company is required to maintain what’s called tangible net equity — basically a few million dollars