On Jan. 28, Moda Health Plan announced that it was withdrawing from the Oregon insurance market, citing high costs as the reason; state officials have confirmed that the firm’s operations have been placed under supervision.
The firm was also suspended at around the same time from operating in Alaska by the state’s insurance regulators.
“Bringing tens of thousands of people into the ACA marketplace, many of them with acute healthcare needs, has been a difficult process to manage,” said Moda Inc. CEO Robert Gootee.
Gootee revealed that Moda Health had not anticipated the high cost of providing care to thousands of customers, putting immense financial strain on the company’s health plan. With direction from the insurance commissioners of both Oregon and Alaska, Moda elected to exit the individual ACA market in both states.
"We now look forward to working to make sure that all individuals in the ACA marketplace will have no interruption in coverage as they transition to new carriers,” Gootee remarked.
Also on Jan. 28, the Oregon Department of Consumer and Business Services, Division of Financial Regulation announced that it had issued an order of supervision to Moda due to concerns over is precarious financial condition. The department will also help Moda transfer its individual market plans to another carrier.
Under the order of supervision, a representative of the department will be tasked to control Moda’s financial decisions. The order also prohibits Moda from issuing new policies or renewing existing ones.
