Bankruptcies in Texas May Affect PacifiCare
PacifiCare Health Systems Inc., the biggest operator of Medicare health plans, said medical costs in Texas may rise after two doctors’ practices there filed for bankruptcy.
The doctors, who have contracts to treat about 100,000 PacifiCare customers, sought bankruptcy protection from creditors in July, the company said in a filing with the Securities and Exchange Commission. PacifiCare had 379,000 customers in Texas as of June 30.
Santa Ana-based PacifiCare said the company isn’t liable for paying claims that are the responsibility of the doctors under Texas law. The company also said that reserves may protect it, though it may face some liability, and that medical costs may rise as a result.
PacifiCare shares fell 15 cents to close at $15.25 on Nasdaq. The shares have fallen 74% in the last 12 months.
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