Here are six insights:
1. The announcement comes less than two weeks after Alaska Division of Insurance’s director said the payer lacked sufficient capital to operate in Alaska in 2016.
2. Moda had a net loss of $58 million at the end of 2015.
3. Last weekend, Robert Gootee, CEO of Moda Inc., Moda’s parent company, reached a consent agreement with the Alaska Division of Insurance and the Oregon Department of Consumer and Business Services concerning the payer’s financial future.
4. As per the agreement, Moda will sell assets, borrow money using surplus notes, report its financial status more often and set aside $15 million to protect Alaskans if the company doesn’t do well.
5. The company will resume selling and renewing policies and the 14,500 people who have coverage through Moda will not have to change insurance companies.
6. If Moda fails to follow the terms of the agreement, the state of Oregon will have full control of Moda and is able to liquidate the company.
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