Commissioner places Mending Health in conservatorship

OKLAHOMA CITY — Mending Health Insurance in Oklahoma Inc. was placed into conservatorship Friday by state Insurance Commissioner Glen Mulready "due to the precarious financial standing of the company."

"Our number one priority is consumer protection," Mulready said. "Considering the company's financial situation, I determined this strong approach was a necessary step to protect policyholders. Through this conservatorship, we can take control of the company and determine the best path forward for its Oklahoma members."

Mending Health is a licensed health maintenance organization domiciled in this state. Formerly known as Taro Health, Mending was founded in 2021 and began offering plans on the Affordable Care Act Marketplace in 2023. It offered individual Marketplace and small group plans in Oklahoma and Maine.

Mending Health was placed into administrative supervision by Commissioner Mulready three months ago. During this period of supervision, the Oklahoma Insurance Department closely monitored the company and determined that conservatorship is necessary to protect Oklahoma consumers.

Placing Mending Health into conservatorship allows the commissioner to take over day-to-day management of the company's operations as well as thoroughly examine the finances of the company. Members' policies will remain in effect for now, and members must continue to pay their premiums to ensure continued coverage.

Mulready appointed Donna Wilson from the Oklahoma Receivership Office in Oklahoma City to be conservator of the company, "to immediately take charge of the company and all the property, books, records and effects; conduct its business, and take such other steps toward the removal of the causes and conditions which have necessitated such order, as the Commissioner may direct."

Wilson will "serve for such time as it is necessary to accomplish the purposes of the conservatorship: that is, to resolve whether an attempt can be made to rehabilitate and conserve the company and avoid, if possible and feasible, the necessity of receivership; to provide for the protection of the assets of the company pending the determination of whether or not the company can successfully be rehabilitated; and to provide a facility and direction for attempting the rehabilitation without immediately resorting to the harsher remedy of receivership."

Expenses "incident to the conservator's services, including the costs of any attorneys' services and any other services performed by the Insurance Commissioner's employees, examiners, consultants, and counsel," will be imposed by the commissioner "and paid from the company's assets and funds…" Kristopher Koepsel, of the law firm Riggs Abney Neal Turpen Orbison & Lewis, was appointed legal counselor for the conservator.

On June 25, Mending Health filed notices with the Insurance Department that it is withdrawing from the Oklahoma marketplace effective Dec. 31. Mending Health policies will not be available or eligible for renewal during the open enrollment for plan year 2027.

The state Insurance Department is coordinating with the Center for Consumer Information and Insurance Oversight to help ensure Mending Health members find new health coverage during the open enrollment period, Mulready said.

Finally, providers should continue to service all Mending Health members and should not demand payment other than the proper cost share associated with the medical service provided and relevant health plan, the commissioner advised.

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Mike W. Ray is a fifth-generation, award-winning journalist who has more than 55 years' experience covering municipal, county, state and federal government in Oklahoma and Texas. He can be reached at mike.ray@swoknews.com.

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