Mending Health lands under Oklahoma supervision following ACA exit

Oklahoma Insurance Commissioner Glen Mulready placed Mending Health Insurance in Oklahoma, Inc. under the supervision of the state insurance department due to concerns about its financial health.

Regulators said the action is intended to protect policyholders and ensure claims continue to be paid during the supervision process.

According to the department, Mending must continue processing claims, servicing members, and making timely payments while under supervision. Mulready has appointed a supervisor to oversee the company's finances and claims handling.

"Consumer protection is our top priority," Mulready stated in the department's announcement. "Given the company's current financial situation, we determined this action was necessary to protect policyholders and ensure they receive their claims."

The supervision order took effect on July 31 through an agreement between the state and the company, as recorded by the Oklahoma Receivership Office. Mending agreed to the order and has not been placed into receivership or liquidation.

Planned Marketplace exit preceded supervision

Mending, formerly Taro Health, was founded in 2021 and began offering ACA Marketplace plans in 2023. The company sold individual marketplace and small-group coverage in Oklahoma and Maine.

On June 8, Mending announced it would stop offering fully insured individual marketplace and small-group products after Dec. 31, 2026.

The company said it will continue serving current members through the end of this year and shift focus to Mending Access, a platform helping employers, third-party administrators, and health plans incorporate direct primary care into benefits.

Unanswered financial questions

The Oklahoma Insurance Department has not publicly disclosed specific financial details behind the supervision order. The agreed order states only that supervision was determined to be in the best interests of policyholders, creditors and the public.

Mending will not participate in the marketplace for 2027. Members will need to select new coverage during open enrollment, which begins Nov. 1, with new coverage taking effect Jan. 1, 2027.

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This report compiled by InsuranceNewsNet staff.