SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 18, 1997
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MAXICARE HEALTH PLANS, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-12024 95-3615709
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(State or other jurisdiction (Commission (IRS Employer
of incorporation or File Number) Identification No.)
organization)
1149 South Broadway Street, Los Angeles, California 90015
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (213) 765-2000
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Item 5. Other Events.
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Maxicare Health Plans, Inc. (the "Company") reported that
its California HMO has signed a definitive agreement with
Molina Medical Centers ("MMC") and has been advised that
all the necessary regulatory approvals have been granted to
assign or transfer MMC's Medi-Cal contracts for the
provision of services in San Bernardino and Riverside
Counties (the "San Bernardino/ Riverside Contract") and
Sacramento County (the "Sacramento Contract"), with the
State of California to Maxicare, effective July 1, 1997 for
approximately 40,000 and 30,000 members, respectively.
MMC will become Maxicare's exclusive Medi-Cal provider in
those service areas. The Company is awaiting receipt of
fully executed documents from the regulatory bodies
reflecting their consent to the foregoing assignment and
transfer. The term for both the San Bernardino/Riverside
Contract and the Sacramento Contract is for the period
through June 30, 1998.
It is the Company's understanding that the state of
California currently intends to implement a new Medi-Cal
managed care program (the "Two-Plan Model") with an
approximate effective date of January 1, 1998 in the San
Bernardino and Riverside Counties. Under the Two-Plan
Model, the state of California through the Department of
Health Services will contract on a multi-year basis with a
commercial health plan and a publicly-sponsored health plan
to provide HMO services to Medicaid recipients. This Two-
Plan Model has been designed in part as a replacement to
the existing Medicaid managed care program in San
Bernardino and Riverside Counties and upon implementation
of the Two-Plan Model the San Bernardino/Riverside Contract
assigned to the Company will be effectively discontinued.
At this point in time the Company cannot be certain when
the Two-Plan Model will be implemented, and if implemented
what level of participation the Company will have in the
Two-Plan Model, if any.
This Form 8-K contains forward-looking information. The
forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements may be
significantly impacted by certain risks and uncertainties
including regulatory approval, the number of beneficiaries
and the reimbursement rates paid by the State of California
during the term of the MMC Medi-Cal contracts referred to
above.
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Item 7. Financial Statements, Pro Forma Financial Information and
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Exhibits.
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(a) Financial Statements of Businesses Acquired.
None.
(b) Pro Forma Financial Information.
None.
(c) Exhibits.
Exhibit No. 10.85 - Health Services Agreement
Between Maxicare, a California Health Plan and Molina
Medical Centers.
Exhibit No. 99.5 - Press release reporting the
Company's California HMO has signed a definitive
agreement with Molina Medical Centers.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
Maxicare Health Plans, Inc.
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(Registrant)
August 12, 1997 /s/ EUGENE L. FROELICH
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Eugene L. Froelich
Chief Financial Officer
and Executive Vice President -
Finance and Administration
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