Zoom Health Plan’s financial statements reportedly paint a picture that is in stark contrast to its operations, prompting the decision of state insurance regulators to place it into receivership.
The Oregon Insurance Division said that it took over the company, which has around 3,000 policyholders insured under its group and individual plans, after the regulator “became aware of a material difference between the company’s 2016 annual financial statement and its actual financial condition.”
It has been commanding the company’s Portland offices since April 05, after it placed the company under supervision. During this period, Zoom Health declared it is leaving the business after sustaining significant losses in 2016.
A review of the firm’s operations revealed the discrepancy between its books and reality, Oregon Insurance Division Lisa Morawski said in a report by
The Oregonian. However, she declined to give further details on the situation.
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Meanwhile, Zoom spokesman Len Bergstein said it still has $9 million in cash reserves, which is more than enough to fulfil its obligations to its policyholders.
The report also added that the 2,000 policyholders under group plans will be transferred by the state regulator to other carriers, while the estimated 700 who have individual plans under Zoom Health will have to find other providers by themselves when their policy expires this year.
Official figures say the company lost close to $9 million in total in the health insurance exchanges in 2015 and 2016.
Zoom Health is an offshoot of a network of clinics, ZoomCare, founded in 2006 by two University of Iowa alums who became medical doctors. The clinics are in good financial health and not subject to the receivership, according to
The Oregonian.
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