Virginia insurance regulators, following up on similar moves by Maryland officials Thursday, froze yesterday the assets of an affiliate of CareFirst, one of the largest health-maintenance organizations in Maryland.
The action, taken against Virginia-based Physicians Health Plan Inc., came a day after Maryland regulators froze the assets of both HealthCare Corporation of the Mid-Atlantic, which operates under the CareFirst name, and an affiliated company, HealthCare Corporation of the Potomac.
The operations and medical services provided by the three HMOs will continue uninterrupted, regulators in Virginia and Maryland said.
Like its two Maryland sister companies, Physicians Health Plan was found to have a net worth -- the amount by which assets exceed liabilities -- below the level required by state law. The three companies are subsidiaries of Baltimore-based HealthCare Corporation of America.