One of only two companies that sells individual health insurance plans in Alaska says it’s pulling out of the individual market.
The statement from Moda Health comes after the state of Oregon placed Moda under supervision late Wednesday. In a press release, Oregon officials say they took the action because of the company’s “excessive operating losses.”
Alaska’s director of insurance Lori Wing-Heier followed suit with a similar order Thursday. But she said the company’s CEO is telling her he wants to work to keep individual members in Alaska.
“It has been our understanding, and our commitment to Moda to work with them, and to give them time to raise the capital to continue in the market if they can raise the capital,” she said. “So the comments they’re exiting are as perplexing to us as they are to others that are reading him.”
The statement released by Moda Vice President Jonathan Nicholas is attributed to CEO Robert Gootee. It reads: “At the direction of the Insurance Commissioners in both Oregon and Alaska, we have resolved to exit the Individual ACA marketplace in both states.”
Lori Wing-Heier estimates the company has about 10,000 individual members in Alaska and another 7,000 members on the small-group market. The division of insurance is working to get a count of Moda members covered by large companies throughout the state.
Wing-Heier said the division has been aware of the financial trouble at Moda and they’ve watching the company closely:
“We knew that they had received a significant infusion of capital in the third quarter that had basically righted the ship, we had thought. But unfortunately it was not enough to overcome the challenges they were facing.”
Moda has six days to prove it has enough reserve funds to continue operating in Oregon and Alaska. Wing-Heier said she’s optimistic the company can stay in business, but said it will be a challenge.
“It’s a large number they’re going to have to come up with and it’s a short time frame.”
The open enrollment period for individual plans on HealthCare.gov runs through Jan. 31. The state is asking people who enroll in the next few days to choose Premera Alaska plans. Premera, the only other insurer on the individual market, said it’s committed to serving Alaska and ready to accept new members from Moda. The company said rates will not change.
The state said HealthCare.gov will hold a special open enrollment period after Jan. 31 to accommodate Alaska customers if necessary.
