Mending Health moves into conservatorship as Oklahoma steps up oversight

Mending Health Insurance in Oklahoma Inc. has been placed into conservatorship by Oklahoma Insurance Commissioner Glen Mulready because of concerns about the company's financial condition.

The Oklahoma Insurance Department announced the action Oct. 30, saying it determined conservatorship was necessary after monitoring the insurer during a period of administrative supervision that began July 31.

Conservatorship allows Mulready to take control of the company's day-to-day management and examine its finances.

Existing Mending policies remain in effect for now, the department said. Members must continue paying their premiums, and providers should continue servicing Mending members. Providers should not seek payment from members beyond their required cost-sharing amounts.

The department did not disclose specific financial figures or provide details about the concerns that led to the conservatorship.

Mending ending insurance coverage after 2026

The conservatorship comes as Mending prepares to discontinue its fully insured health plans. The company announced in June that it would stop offering individual Marketplace and small-group plans after Dec. 31, 2026.

The company has already stopped accepting new enrollments and will not appear on HealthCare.gov, according to the Oklahoma Insurance Department's August announcement. Existing members, however, can continue using their coverage through the end of the year.

Formerly known as Taro Health, Mending was founded in 2021 and began offering Affordable Care Act Marketplace plans in 2023. It offered individual and small-group coverage in Oklahoma and Maine.

Mending co-founder Jeff Yuan told StateImpact Oklahoma in June that rising health care costs and the expected expiration of enhanced federal premium tax credits were among the factors behind the company's decision to leave the insurance market.

He also said the company was too small to compete effectively as an insurance carrier.

About 7,000 Oklahomans are expected to be affected by the company's departure, according to StateImpact.

Mending plans to continue serving employers, third-party administrators and other health plan customers through Mending Access, a platform that helps incorporate direct primary care into health benefits.

Members must select new coverage for 2027

Mending is working with CommunityCare in Oklahoma on coverage options for 2027. The companies announced a partnership in June to offer Marketplace plans with direct primary care providers in network.

Mending's October insurance update said CommunityCare is offering a direct primary care plan for 2027 that is similar to Mending's current plans. The company said it would provide members with information about potentially transitioning during open enrollment.

The Oklahoma Insurance Department said Mending policies will not be available or eligible for renewal for the 2027 plan year. The department is working with the federal Center for Consumer Information and Insurance Oversight to help members find new coverage.

Open enrollment begins Nov. 1, with new coverage taking effect Jan. 1, 2027.

The department's July supervision action required Mending to continue processing claims, servicing members and making timely payments. The company agreed to the supervision arrangement.

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Noah Lopez is editorial assistant for InsuranceNewsNet. Contact him at noah.lopez@innfeedback.com.