Moda Health Plan was suspended Jan. 28 from accepting new or renewed policies in Alaska by state insurance regulators.
Due to the suspension, Alaskans have one less carrier to choose from on the federally-facilitated health insurance marketplace—of which only one other carrier is left: Premera Blue Cross Blue Shield.
Last year, the state division of insurance approved average rate increases of almost 40% for both Moda and Premera.
In response to the suspension, the Oregon Department of Consumer and Business Services issued a supervision order on the same day (Jan. 28) that called to the Portland-based Moda to maintain sufficient capital and to present a viable business plan that could prove that the carrier can still financially operate into the future. The submission of the business plan was due within the day.
Officials reasoned that the order was prompted by the carrier’s “excessive operating losses and inadequate capital and surplus.”
The carrier cannot issue new polices or renew existing ones in the individual market, nor add groups in Oregon due to the order. The Oregon Department of Consumer and Business Services said that it would help transfer Moda’s individual market plans to another company.
“Our primary goal is to ensure consumers are protected,” department director Patrick Allen mentioned in a release. “We will continue to work closely with the company to find a sustainable path going forward while minimizing risk to consumers.”
In an email from Alaska Division of Insurance Director Lori Wing-Heier, The Columbian confirmed that there are about 1,000 Alaskans enrolled under Moda on the individual market and 7,500 on the small group market.
