Exhibit 99.5




       MAXICARE TO ADD 70,000 MEDI-CAL MEMBERS JULY 1, 1997



LOS ANGELES, JUNE 16, 1997 ---- MAXICARE HEALTH PLANS, INC. (NASDAQ
- - NMS: MAXI) announced today  that  its California HMO has signed a
definitive agreement with  Molina  Medical  Centers ("MMC") and has
received  all  the  necessary  regulatory  approvals  to  assign or
transfer MMC's Medi-Cal contracts for  the provision of services in
San Bernardino, Riverside and  Sacramento  Counties, with the State
of California to Maxicare, effective July 1, 1997 for approximately
70,000 members.    MMC  will  become  Maxicare's exclusive Medi-Cal
provider in those service areas.    The length of the contracts and
other conditions  are  still  subject  to  further negotiations and
necessary regulatory approvals.

Maxicare is a managed  health  care  company that operates in seven
states,  serving   members   in   California,   Indiana,  Illinois,
Louisiana, North Carolina, South Carolina and Wisconsin. 

This  press  release  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  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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