“Licensure is important because licensed plans must comply with vital patient protections in the law,” said DMHC Director Mary Watanabe.
The California Department of Managed Health Care (DMHC) took enforcement action against Spring Care, Inc. (Spring Health), including a $1 million fine, for offering health care services in California without a license. The plan agreed to pay the penalty and has become licensed to legally operate in the state.
“Licensure is important because licensed plans must comply with vital patient protections in the law,” said DMHC Director Mary Watanabe. “Members of licensed plans have rights, including the ability to file a complaint. Spring Health has obtained a license to legally operate moving forward, ensuring the plan’s members are protected.”
PLAN TAKES CORRECTIVE ACTION: Spring Health acknowledged their failure to comply with the law and agreed to pay the $1 million penalty. In addition, Spring Health worked with the DMHC to get licensed so they can continue providing health care services to California-based employees legally.
For more information and other press releases from the California Department of Managed Health Care (DMHC), read more below.
