Jeffrey Thompson fights Chartered Health Plan sale


DISB Press Release: AmeriHealth Agrees to Buy Chartered Health’s Assets as Rehabilitator Seeks to Avoid Disruption in Medicaid Services

DISB header
For Immediate Release
February 22, 2013
Contact: Mike Flagg
(202) 442-7753

AmeriHealth Agrees to Buy Chartered Health’s Assets as Rehabilitator Seeks to Avoid Disruption in Medicaid Services

***The department will hold a conference call for reporters today, Friday, Feb. 22 at 3 p.m. To participate, contact Kate Hartig at kathryn.hartigto RSVP and for dial-in information. Related documents will be posted shortly to ***

Washington, D.C. (Feb. 22, 2013)—The official supervising the receivership of D.C. Chartered Health Plan Inc. said Friday he has agreed, subject to Court approval, to sell certain assets to AmeriHealth Mercy Family of Companies, a national leader in Medicaid managed care, in a transaction that aims to prevent serious disruption in health care for more than 100,000 of the District’s Medicaid beneficiaries.

“Our consistent goal has been to avoid disrupting health care delivery to this vulnerable group of people,” said William P. White, commissioner of the District’s Department of Insurance, Securities and Banking. “The sale of Chartered’s assets to a large, stable company can help ensure that.”

Chartered, the city’s largest Medicaid contractor, has had financial difficulties, losing more than $9 million in 2011 alone; the Department put it into receivership in October with the consent of Chartered’s board.

As a result of the transaction, the network of doctors and hospitals providing care to Chartered’s customers would continue serving them; and AmeriHealth would hire most of Chartered’s employees.

AmeriHealth, headquartered in Philadelphia, has agreed to put more than $30 million in capital into a new D.C. company. An audit of Chartered’s financial condition in 2011, completed recently, showed it had limited capital remaining.

Chartered would seek to have its Medicaid contract with the city transferred to this new company upon court approval of the transaction. AmeriHealth would also pay $5 million for assets that include Chartered’s name, other intellectual property and most of its agreements with health-care providers, as well as provide free transition services to Chartered.

AmeriHealth, meanwhile, has applied to the City for a new five-year contract to service Medicaid enrollees and members of the city’s own health-care plan, D.C. Healthcare Alliance, replacing Chartered.

Financial advisors Keefe, Bruyette & Woods said the AmeriHealth deal “is the best alternative and represents a reasonable reflection of any inherent value in Chartered’s business operation in its current state, given the significant challenges – legal and financial” confronting the company, said Deputy Rehabilitator Daniel L. Watkins, the official in charge of the receivership, in a status report to the Superior Court judge supervising the receivership.

AmeriHealth was the best qualified suitor, with the capital and experience to handle a large group of enrollees, according to an earlier report to the court. The company is a national leader in Medicaid managed care and other health-care solutions for the under-served with nearly 5 million members in 14 states.

The judge must approve the transaction and AmeriHealth must secure a contract with the city before the transaction can close.

“Putting this transaction together has been a complicated process and has required a lot of work and good faith on both sides,” said Mr. Watkins, the deputy rehabilitator. “But the transaction we’ve submitted to the court today is the best one to achieve the various goals and needs of the city, Chartered and its Medicaid customers, one that can guarantee the least disruption and best results for the District’s Medicaid market.”

Because the transaction is a sale of certain assets, not of the stock that represents ownership of the entire company, Chartered will keep two illiquid assets: more than $12 million in Chartered investments pledged as security for a bank loan in 2008 that its parent company, D.C. Health Care Systems Inc., borrowed; and more than $60 million in claims against the city for premium reimbursement, primarily for expensive HIV medications.

By law, the deputy rehabilitator must preserve any residual value (after all other claims are paid) for Chartered’s parent company, whose sole shareholder is Jeffrey Thompson. However, the deputy rehabilitator is seeking several million dollars owed by the parent company to Chartered in federal income-tax refunds. Chartered’s outside auditor has questioned additional payments of more than $1 million to a company formerly related to Chartered. Additionally, Mr. Thompson has indemnified Chartered for the collateral on the 2008 bank loan.

Chartered will remain in receivership through at least the rest of the year under the reorganization plan filed with the Court.

For more information, visit

District of Columbia State Advisory Forum 10-02-2013

NCCI is pleased to announce the date for the 2013 District of Columbia State Advisory Forum will be October 2, 2013 at the Embassy Suites DC Convention Center.

The forum is designed to promote education and provide a greater understanding of both national and District of Columbia specific workers’ compensation issues. The forum will take place after NCCI’s May Annual Issues Symposiumbeing held in Orlando, Florida on May 16-17, 2013 in order to provide you with the most relevant and up-to-date information.

We will continue to focus on District of Columbia-specific information and speak in greater detail on:

  • Proposed/enacted state and federal legislation
  • State system cost drivers
  • NCCI studies and economic information
  • The residual market

At these forums, we encourage participation from the broadest cross section of the workers’ compensation community, such as:

  • NCCI affiliates
  • Departments of Insurance
  • Workers’ Compensation Commissions
  • Insurance trade associations
  • Legislators
  • Self-insureds
  • Employer trade associations

The content of the forum is tailored to the District of Columbia specific data and market place. There is no charge to attend these forums, but reservations are required.

You can register by going to:

Experience the power of information. We look forward to seeing you there.

George A. Ortiz

State Relations Executive

National Council on
Compensation Insurance

111 River Street, Suite 1202

Hoboken, New Jersey 07030

(P) 201-386-2624 (F) 561-893-5218



2013 DC SAF 10-2-2013.pdf

Chartered Health Plan sale could leave significant unpaid bills

Chartered Health Plan sale could leave significant unpaid bills

By Mike DeBonis , Updated: February 22, 2013

The largest manager of heath care for low-income D.C. residents is on the cusp of finalizing a sale, but the transaction could leave tens of millions of dollars of medical bills in limbo.

Two officials familiar with the transaction but not authorized to speak publicly said Friday that court papers should be filed before day’s end notifying a judge that Chartered Health Plan’s assets will be sold to Philadelphia-based AmeriHealth Mercy. The terms of the sale were not immediately available, but AmeriHealth Mercy, which has been in talks with Chartered for months, is not expected to assume its liabilities, including unpaid medical claims that could total $40 million or more.

Chartered, owned by businessman Jeffrey E. Thompson, was placed in city receivership by insurance regulators last October and has been in the public eye since Thompson became embroiled in campaign finance investigations nearly a year ago. It manages the health care for about 110,000 D.C. residents.

The proceeds from the sale to AmeriHealth Mercy are not expected to cover the full cost of the unpaid claims, the officials said, leaving it unclear how providers — including local hospitals, clinics and doctors — will be paid for care they have provided.

Besides the sale proceeds, Chartered is hoping to recover income through a lawsuit against the city seeking reimbursement for what it considers illegally low Medicaid rates. But the city is fighting the lawsuit, and it is unclear how quickly the dispute might be settled. One of the officials said it is likely that medical providers will lobby the District government to pay the bills itself.

Michael Flagg, a spokesman for the city insurance department, declined to comment Friday morning. Wayne Turnage, the city health-care finance director, was not immediately available for comment.

DISB Press Release: America Saves Week Encourages D.C. Residents to “Set a Goal, Make a Plan and Save Automati cally”

For Immediate Release
February 21, 2013
Contact: Kate Hartig
(202) 442-7753

America Saves Week Encourages D.C. Residents to “Set a Goal, Make a Plan and Save Automatically”

Department Joins Bank on DC, Operation Hope, Capital Area Asset Builders and the D.C. Financial Literacy Council for Week-Long Savings Campaign

Washington, D.C. (Feb. 21. 2013) – The D.C. Department of Insurance, Securities and Banking is participating in America Saves Week from Feb. 25 to March 2 to encourage D.C. residents to build wealth through savings. The Consumer Federation of America and the American Savings Education Council organized the campaign to help people create savings plans, save more, reduce debt and build wealth.

Thirty percent of D.C. households do not have savings accounts, according to a recent Federal Deposit Insurance Corp. survey. In addition, 11 percent of D.C. households are “unbanked,” or have no bank accounts, and often rely on expensive check-cashing services.

“America Saves Week is a great opportunity to educate D.C. residents about the importance of saving and to let them know about the local financial resources available,” said William White, commissioner of the Department of Insurance, Securities and Banking. “The department is pleased to partner with America Saves to help residents manage their financial future.”

During America Saves Week, the department and its partners will promote savings with free financial education workshops at nine DC Earned Income Tax Credit locations in the District and publicize savings strategies through social media. In addition, the District’s Financial Literacy Council will promote savings through public-service announcements and circulate information to their participating organizations. Bank on DC will assist residents in signing up for bank accounts and Capital Area Asset Builders and Operation Hope will host the following workshops, open to the public:

Capital Area Asset Builders and Operation Hope Workshops

Savings and Investing
1444 I (Eye) Street, NW, Suite 201
Thursday, Feb. 21, 6 p.m. – 9 p.m.

1444 I (Eye) Street, NW, Suite 201
Thursday, Feb. 28, 6 p.m. – 9 p.m.

Small Business Seminar
HOPE Financial Dignity Ctr., 2509 Good Hope Rd., SE
Thursday, March 2, 11 a.m. – 2 p.m.
Operation Hope

Estate Planning
1444 I (Eye) Street, NW, Suite 201
Thursday, March 2, 6 p.m. – 9 p.m.

1444 I (Eye) Street, NW, Suite 201
Thursday, March 14, 6 p.m. – 9 p.m.

College Planning
1444 I (Eye) Street, NW, Suite 201
Thursday, March 21, 6 p.m. – 9 p.m.

For more information on CAAB workshops, contact Linda Easley Stroman, Director of Financial Education, on (202) 419-1440 ext.109. For the Operation Hope seminar, call (202) 582-2212.

To learn more about America Saves Week and for additional savings tips, visit Also, follow us on Twitter for more information at @DCDISB or our partners at @bankondc @OperationHope.

About the Department of Insurance, Securities and Banking

The District of Columbia Department of Insurance, Securities and Banking has two missions: to fairly and efficiently regulate financial services in order to protect the people of the District of Columbia; and to attract and retain insurance, securities, banking and other financial-services businesses to the District. For more information, visit

About Bank on DC

Bank on DC is a collaborative effort between District government, financial institutions, and non-profits whose mission is to provide mainstream access to financial services, products, and financial education to unbanked and under-banked households in the DC Metro Area. For more information about Bank on DC, visit

About Capital Area Asset Builders

Capital Area Asset Builders puts people on the road to financial independence. Our programs help low and moderate income individuals and families improve their money management skills, increase their savings, and build wealth by investing wisely. Our goal is to create a community that provides everyone with incentives and opportunities to save for the future. Visit for more information.

About the District of Columbia Financial Literacy Council

The District of Columbia Financial Literacy Council was established by the DC Council through enactment of the Financial Literacy Council Establishment Act of 2008. The purpose of the council is to assist and advise the Mayor and the DC Council in promoting financial literacy to the city’s residents.

Councilmember David Grosso Supports Council Reprimand

For Immediate Release
February 21, 2013

Contact: Dionne Johnson Calhoun

Councilmember David Grosso Supports Council Reprimand

Washington, D.C. – Councilmember David Grosso (I-At-Large) issued the following statement on the "Council Reprimand of Councilmember Jim Graham Resolution of 2013."

"As an elected official, it is my duty to hold my colleagues accountable when they deviate from the highest standards of ethical conduct and violate the public trust. District residents are tired of the corruption, ongoing investigations, and want change. Residents also demand leadership on the Council with a clear vision for improving the lives of all residents in the District. Investigations lead to distractions and hurt the progress of our city. Only through severe and swift reprimands, censures and stripping committee assignments, can the Council let the people know that we are serious about ethics reform and about moving our city forward."

"I stand today with Chairman Mendelson in proposing the reprimand and the recommendation that Councilmember Graham’s committee responsibilities be reduced. This reprimand is overdue and likely too lenient, but we must move on and let this serve as notice to all members that violating the confidence of the public will not be tolerated on the D.C. Council."


Dionne Calhoun

Communications Director & Community Affairs

Councilmember At-Large David Grosso

1350 Pennsylvania Avenue, NW

Suite 406

Washington, D.C. 20004

(202) 724-8105

Kevin Wrege, Esq.

Founder & President

Pulse Issues & Advocacy LLC

Office: 202-625-1787

Mobile: 202-253-4929

4410 Massachusetts Ave., NW, #150

Washington, DC 20016

1.7M new residents expected to head to D.C. region by 2040

Forecast: 6.9 million to live in D.C. region by 2040

February 14, 2013 | 11:00 am | Modified: February 14, 2013 at 11:05 am

Large crowd of people

Alan Blinder

Staff Reporter, D.C. City Hall

The Washington Examiner

Up to 1.7 million new residents are expected to flood the D.C. region within the next three decades, an updated analysis by local governments shows, but politicians and transit advocates are at odds about whether the area is prepared for the spike that could lead to even more gridlock on roadways.

The draft forecast from the Metropolitan Washington Council of Governments calls for the area’s population to climb to 6.9 million by 2040, about 131,000 residents more than the group previously estimated.

If the projections come to fruition, it would mean that the region would have grown by nearly one-third between 2010 and 2040.

"We see the strongest growth in the region’s suburbs," said Rosalynn Hughey, a D.C. planning official who helped prepare the forecast. "But we also see growth in the District."

Northern Virginia is expected to power much of the expansion, with the population of Fairfax County jumping by 288,000, the most of any jurisdiction in the region.

Where they will live by 2040
Central jurisdictions (D.C., Alexandria and Arlington): 1.2 million
Inner suburbs (Cities of Fairfax, Falls Church, Gaithersburg and Rockville; counties of Fairfax, Montgomery and Prince George’s): 3.6 million
Outer suburbs (Cities of Manassas and Manassas Park; counties of Calvert, Charles, Frederick, Loudoun, Prince William and Stafford): 2.1 million
Source: Metropolitan Washington Council of Governments

Arlington County is expected to log about 68,500 new residents, while Prince William and Loudoun counties together will see their populations climb by an estimated 380,100 people.

But the immediate Maryland suburbs — Montgomery and Prince George’s counties, Gaithersburg and Rockville — are also poised to add plenty of heft to the region’s population. The study found that those four jurisdictions will grow by about 420,000 people.

The District’s population is expected to increase by about 28 percent to 771,200.

Stewart Schwartz, executive director of the Coalition for Smarter Growth, said that although local governments have been planning ahead, state governments need to focus on looming population increases.

"This is exactly why we argue that where we grow and how we grow — specifically how we design our communities