BEND, OR -- Moda Health will continue to operate in the state. Oregon officials have accepted the health insurer's business plan to overcome financial troubles. Currently Moda serves 60,000 Oregonians through the individual market, and more than 130,000 in the large group market.
Local agent Don Klippenes, with Health Insurance Strategies, applauds the decision. "I think it's a smart move on the state's part," says Klippenes. "It doesn't really surprise me, because Moda has been a very significant player in state insurance in Oregon for the last numerous years. And, to take and change that, or to pull one of those carriers out, would not have been in the 60-some thousand people's best interest, in my opinion."
He's telling his clients to keep up with payments, so they don't get dropped. "The biggest thing that we're doing is making sure people pay their premium on time and that they watch their bank account for the automatic draft, those types of things. Then it's virtually business as usual. Everything should be good to go until the next open enrollment, which is the fall of 2016."
Klippenes tells KBND News those who are currently insured by Moda must remain with the company, for now. "Unless the state had shut down Moda, there's not a special election, and so the news that the state is not shutting down Moda, Moda is continuing to operate as business as usual with some very tight state oversight."
State officials say Moda's business plan should generate more than $170 million for the company, providing sufficient capital to continue operations. All aspects of Moda plans will continue as usual, from premiums to benefits. If Moda does not complete all requirements mapped out in the plan, the state retains the right to shut them down in the future.