Exhibit 99.2




              BOARD OF CLAIMS RULES AGAINST MAXICARE



LOS ANGELES, APRIL 1, 1997----  MAXICARE HEALTH PLANS, INC. (NASDAQ
- - NMS:MAXI) announced today that  the Company received on March 31,
1997 a  ruling  from  the  Commonwealth  of  Pennsylvania  Board of
Claims.  The Board of Claims ruled that the Company is not entitled
to any recovery on its claim against the Pennsylvania Department of
Public Welfare ("DPW") for  in  excess  of $24 million plus accrued
interest, in connection with  the  operation  of a Medicaid managed
care program from 1986 through 1989.   The Company is reviewing the
Board of Claims' findings and  order and is evaluating its options,
including  the  effect  of  the  order  on  the  Company's recorded
estimate of amounts due the Company from the DPW.

Maxicare  is  a  managed  health  care  company  with  health plans
operating  in  California,   Indiana,  Illinois,  Louisiana,  North
Carolina, South Carolina and Wisconsin.






















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