Moda, Inc. announced a series of transactions designed to add to its ongoing redeployment of capital and to stabilize the financial position of Moda Health Plan, Inc. These transactions, referred to in the consent order agreed to earlier this year, include:
(i) The sale of Dentists Benefits Insurance Company (DBIC) and Northwest Dentists Insurance Company (NORDIC) to The Dentists Insurance Company.
(ii) The planned sale of the 57,000-square-foot Moda Plaza located at 10505 SE 17th Ave. in Milwaukie.
(iii) The securitization of government receivables (risk corridor payments) to a third party.
The redeployment of corporate assets to Moda Health Plan, Inc. began with the announcement in November, 2015 of the addition of $50 million from the sale of surplus notes to the health plan's parent company, Moda, Inc. Proceeds from the transactions announced today bring the total of additional capital deployed to more than $165 million. Future announcements will be made as Moda continues its redeployment strategy.
“This increased capitalization of our health plan positions us to refocus our efforts,” said Robert Gootee, President and CEO of Moda, Inc. “Our diverse product portfolio both for groups and individuals is now well supported by a capital base that allows us to continue to recover from the unanticipated shortfall in risk corridor payments announced by CMS last fall.”
Early this year, Oregon’s Department of Consumer and Business Services required Moda Health to stabilize its financial position in response to that shortfall created by the delay in risk corridor payments. Said Gootee, “Moda will continue to provide the financial security as is needed to support our insurance operations. We have in our corporate group of companies the assets needed to address the types of issues that have come up in the implementation of the ACA.”
About Moda
Moda, Inc., founded in 1955, is Oregon’s largest privately-held corporation. Companies in the Moda group today include Moda Health Plan, Ardon Health, Arrow Dental, BenefitHelp Solutions, Dental Commerce Corp., Delta Dental Plan of Oregon, Dentists Management Corp., Eastern Oregon Community Care Organization, ODS Community Health and PayLess Drug.
