Statement from Premera on Moda exit from Alaska

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Melanie Coon, spokesperson for Premera Blue Cross Blue Shield of Alaska, sent us the following comment regarding the announcement that Moda will be exiting the Alaska marketplace.

We’re not surprised by news about actions by state regulators against Moda Health. News reports in recent months made it clear that Moda faced serious financial challenges.

This is a time of change in the healthcare system. Premera has significant concerns with the stability of Alaska’s individual market. Skyrocketing medical costs have resulted in large premium increases, as well as significant financial losses for Premera and Moda serving plans under the Affordable Care Act.

This news about Moda amplifies the need for policymakers, regulators and health plans to work together to implement a reinsurance program that will spread risk across a broader population in order to stabilize Alaska’s small individual market. This can help attract additional carriers to the individual market in Alaska and increase consumer choice.