To remain in market, the insurance carrier must raise $179 million.
The Alaska Division of Insurance and the Oregon Department of Consumer and Business Services said they have reached an agreement with Moda Health Plan Inc. aimed at stabilizing its financial position.
…The agreement calls for Moda to raise at least $179 million, which is expected to allow the company to continue providing services through 2016. Of that, $15 million would be put aside for the protection of Alaska policyholders, Wing-Heier said. The $15 million bank deposit for Alaska policyholders also could come from existing Moda funds, said Lisa Morawski, a spokeswoman for the Oregon department.
(READ MORE: Register-Guard)
Benefits will resume for members.
The Department of Consumer and Business Services issued a consent order today that outlines a plan for Moda to raise sufficient funds and continue to serve customers without interruption, so that all health insurance plans, including deductibles and benefits, remain unchanged. The company has about 62,593 customers in the individual market, down from 95,000 last year.
… ‘Since January 27, we have been working through the process of assuring DCBS of our ability to continue to service our individual customers in Oregon and Alaska,’ Moda CEO Robert Gootee said Monday in a statement. ‘They have done an excellent job of quickly analyzing a difficult and rapidly changing set of circumstances. We’re pleased that, together, we now have reached an agreement on a path moving forward that ensures Moda members will see no interruption in coverage.’
(READ MORE: Portland Business Journal)
The state’s order also requires Moda to seek state approval before paying executive salary increases or bonuses, according to the Portland Business Journal.