In Brief: DMHC Seizes Dental Plan

The Department of Managed Health Care has seized the assets of an Arcadia-based dental plan.

The DMHC also appointed a conservator for American HealthGuard Corp., which also operates as CentaGuard Dental Plan. It provides both commercial and Denti-Cal coverage. The DMHC took action on Aug. 10.

According to DMHC documents, American HealthGuard had failed to maintain sufficient capital since 2009, and had a total capital deficiency of more than $400,000 in August 2011. The plan also failed to meet minimum tangible net equity requirements. In March, it met positive cash flow requirements only by failing to pay its insurance and capitation fees to providers.

Enrollment in the plan has tumbled from more than 24,000 three years ago to less than 17,000 last spring.

The plan also failed to make monthly reports to the DMHC, which the agency required about a year ago.