Moda not dependent on federal funding, CEO says


Robert Gootee is confident a “significantly underfunded” program created by the ACA will pay out.

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BY JACOB PALMER | DIGITAL NEWS EDITOR

Moda CEO Robert Gootee is confident a “significantly underfunded” program created by the ACA will pay out.

He also said the company would survive regardless.

From the Portland Business Journal:

“Obviously, we look at those kinds of things, and it’s probably a completely impossible scenario to collect zero,” Gootee said. “We’ve done some stress testing of it.”

Even with a payment lower than the projected $82.5 million, Gootee said Moda’s risk-based capital ratio, a key indicator of financial solvency used by the Oregon Insurance Division, would remain at a healthy level. The division evaluates insurance companies to ensure solvency and financial stability, just as state and federal authorities regulate banks. For health insurance, regulators compare the company’s total adjusted capital and surplus with its requirement for risk-based capital. That’s the minimum amount of capital the division has determined an insurer needs to support its overall business operations.

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