The District has taken over a managed-care company owned by the man at the center of a federal probe into an alleged “shadow campaign” in 2010 that worked on behalf of now-mayor Vincent C. Gray, officials said Friday.
City officials said D.C. Chartered Health Plan will continue to provide services to nearly 110,000 members and issue payments to health-care providers while the lucrative contract — owned by high-profile political donor Jeffrey E. Thompson — is in a receivership under the control of the D.C. Department of Insurance, Securities and Banking (DISB).
A Superior Court judge signed off on the District’s petition to seize control of Chartered on Friday, after officials revealed there were “financial irregularities” on the company’s books.
The District’s five-year contract with the company and two other health plans expire on April 30, so the receivership should allow Chartered to stay on “life support” and provide services until then, a city employee familiar with the move said.
Mr. Thompson has not been charged, but prosecutors alluded to his role when taking a guilty plea from Gray aide Eugenia Harris, who said she managed the furtive funds and straw donations to the campaign.
D.C. Council member David A. Catania, at-large independent and chairman of the Committee on Health, praised the DISB and the D.C. Department of Healthcare Finance for brokering the court action.
“Today’s filing was a necessary step to ensure continued access to care for the 110,000 District residents on Chartered’s rolls,” he said. “Further, it will provide financial certainty to the dozens of health care providers that make up the plan’s service network. “
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Tom Howell Jr. covers politics for The Washington Times. He can be reached at email@example.com.
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