Some 165,000 patients of a Silicon Valley health insurer will be searching for new medical insurance in the coming months as the company is being shut down Dec. 31, according to an Associated Press report.
Lifeguard Inc., which has insured both public and private employees, was taken over by the state earlier this month as it has had trouble dealing with rising health care claims. Recent numbers show the company had a net loss of $3.9 million since the start of 2002.
According to the California Department of Managed Health Care, this will be the fourth HMO the state has put to rest in two years.
Close to 400 employees will lose their jobs as a result of the decision.