Lately, Moda Health is a topic in hallways, dining rooms and on social media. We’ve received a number of questions from our customers and thought it’d be helpful to break it down. Here’s the story:
WHO IS MODA? Moda Health, Inc—headquartered in downtown Portland (and better-known as the business sponsor and namesake of the Moda Center—home of the Portland Trail Blazers). They’re the third largest health insurer in Oregon, providing individual and group coverage.
WHAT HAPPENED? On, January 28, 2016, it became public that Moda Health, Inc. received a “60-day Order of Immediate Supervision” from the State of Oregon—which meant the state stepped in to oversee business decisions, due to concerns of Moda’s financial stability. Moda, like other local insurers, were counting on federal insurance benefits that didn’t materialize. That, and other issues like a low performing fourth quarter and a drastic decrease in reserves in 2015, prompted concern. With this regulatory move, it was unclear whether Moda would survive.
The state required Moda to craft a new business plan by Friday, two days after the notice of supervision.
On February 8, 2016, Oregon insurance regulators removed state control after Moda crafted a financial plan of action and agreed to sell assets and take additional steps to raise $179 million and stabilize company finances—all with the goal of no disruption to Moda customers. The Oregon Department of Consumer and Business Services (DCBS) issued a consent order with the details.
“Without the new Financial Plan of Action, which is confidential, Moda possibly could have gone into receivership, said DCBS Director Patrick Allen. “We’ve done things to keep them on a short leash and make sure they make good on their commitments.”
SO WHAT DOES THIS ALL MEAN? For now, Moda will stay in business and remain operating in Oregon. For current Moda Health customers, plans, benefits and deductibles remain unchanged.
See the DCBS questions and answers page for more details.
We hope that’s helpful! If you have any questions, please reach out.