Alaska Division of Insurance and Moda negotiate Consent Agreement

February 8, 2016 JUNEAU– In conjunction with the Oregon Department of Consumer and Business Services (DCBS), the Alaska Division of Insurance came to an agreement over the weekend that outlines a plan for Moda Health Plan Inc. to stabilize its financial position and continue to serve consumers.

The agreement means all Moda policyholders will be able to keep their plans; Moda will resume selling and renewing policies to both individual and group customers in Alaska and Oregon.

“By negotiating a consent agreement, we are able to protect consumers while also limiting the disruption to policy holders,” said Lori Wing-Heier, director of the Division of Insurance. “This solution will allow consumers to continue their health coverage with no changes.”

The Oregon Order of Supervision and Alaska Order of Impairment have been lifted and replaced by a single Order of Consent from DCBS (attached). The stipulations in the order will generate a sustainable level of capital and sufficient cash flow for Moda to continue to provide service to policyholders in Alaska and Oregon through 2016. The requirements include:

  • Selling a combination of assets to outside parties, making all proceeds available to Moda
  • Selling of a portion of federal receivables
  • Obtaining surplus notes
  • Establishing of a bank deposit in an Alaska bank for the benefit of Alaska policyholders
  • Providing additional reporting to DCBS and the Alaska Department of Insurance. If Moda does not complete all requirements as scheduled, regulators retain the ability to take swift action.

“These steps will provide an adequate financial cushion for the company as well as increased regulatory oversight to ensure the company stays on track,” said Patrick Allen, director of the Oregon DCBS.

For Moda policyholders, there is no need to take action; policyholders can continue to access health care services and should submit claims as usual. All premiums, cost-sharing, networks, and benefits in both the individual and group markets will remain the same.