State takes Zoom Health Plan into receivership, files $3 million - KPTV - FOX 12

State takes Zoom Health Plan into receivership, files $3 million lawsuit

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PORTLAND, OR (KPTV) -

The Oregon Department of Consumer and Business Services has filed a $3 million lawsuit regarding Zoom Health Plan, which has been placed in state receivership.

The lawsuit was filed Tuesday in Marion County Circuit Court.

According to the Oregon Department of Consumer and Business Services, Zoom Management Inc., an affiliated company, was supposed to pay the $3 million in late 2016 in exchange for a surplus note, but never made the payment.

"This funding is critical for Zoom Health Plan to meet its obligations to policyholders," said Patrick Allen, director of DCBS.

The state department was granted approval to take Zoom health Plan into receivership on Friday, "to preserve assets and make sure policyholder claims and other liabilities are paid," according to the state.

The receivership does not affect Zoom+Care, which operates clinics throughout the metro area.

In its annual financial statement submitted to DCBS, Zoom Health Plan reported capital and surplus of $2,873,168 as of Dec. 31, 2016. But without the cash from the $3 million surplus note, its actual capital and surplus was negative $126,832 at the end of 2016, making it insolvent.

Although Zoom Health Plan has received about $2 million in capital since it filed its financial statement, Allen said the $3 million is critical to Zoom's ability to pay claims.

"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," Allen said.

Zoom Health Plan currently serves fewer than 2,000 members. 

All current Zoom Health Plan individual policies will be canceled effective Dec. 31, 2017. Group policies will expire at different times, depending on their renewal dates.

For more details, go to dfr.oregon.gov/business/resources/Pages/zoom-faqs.aspx.

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