Oregon start-up insurance company Zoom Health Plan Inc. is winding down operations, according to the Oregon Department of Consumer and Business Services (DCBS). All current Zoom Health Plan individual policies will be canceled effective Dec. 31, 2017, while group policies will expire depending on their renewal dates.
The state in April took Zoom Health Plan into receivership and is currently working with the company to wind down its insurance business. Zoom Health Plan has been steadily shrinking since the fourth quarter of 2016, and as of April 2017 serves fewer than 2,000 members.
In addition, the state has filed a lawsuit in its capacity as receiver of the insurance company, having discovered that a $3 million surplus note included in the financial statement as a receivable from Zoom Management Inc., an affiliated company, had not been funded.
"This funding is critical for Zoom Health Plan to meet its obligations to policyholders," said DCBS Director Patrick Allen, in a statement regarding the lawsuit. "Our goal through the receivership is for those with Zoom Health Plan policies to be able to stay on those plans and access the health services they need through the end of the year."
Published by AIS Health
© 2017 Managed Markets Insight & Technology, LLC. All Rights Reserved.