Ratings firm A.M. Best reduced Moda’s financial strength rating from Good to Under Regulatory Supervision; the financial strength of Moda’s dental insurance arm fell to Fair.
All ratings except for Moda Health have been placed under review with negative consequences, the ratings agency said. It was the second downgrade in recent months, after Moda posted losses and learned it would receive less than 13 percent of the $181 million it was expecting from a federal risk-reduction program.
The actions “reflect the strain on the organization due to Moda Health’s financial condition and the potential impact to other rated entities,” A.M. Best announced.
(READ MORE: Portland Business Journal)