Riverstone Capital, a insurance carrier based in Bakersfield, Calif., may file for bankruptcy after failing to pay medical claims for more than 100 employers, according to The Modesto Bee.
Three things to know:
1. On Feb. 1, the U.S. Department of Labor filed a complaint against Riverstone and two associated companies accusing Riverstone of charging low premiums to attract customers. The complaint argues the premiums were unsustainable and that the company charged exorbitant fees.
2. As of late December, Riverstone managed medical plans for about 112 employers, according to the complaint, cited by The Modesto Bee. More than 16,000 of the employers' medical claims were unpaid, totaling $24 million in outstanding payments.
3. A Riverstone employee inadvertently revealed the bankruptcy plans in a voicemail left with a reporter for The Modesto Bee. The Riverstone employee thought he had called a senior trial attorney with the Labor Department.
For the full report, click here.