DCBS Media Release

November 12, 2003
For More Information:
John Piper, 503-947-7213

State fines ODS Health Plan for insurance violations

SALEM – ODS Health Plan, Inc., has been fined $17,500 for past violations of state insurance laws and administrative rules.

The Portland-based health insurer potentially faces an additional $20,000 penalty if the Insurance Division of the Department of Consumer & Business Services (DCBS) finds that the company hasn't corrected problems first identified during market conduct examinations in the 1990s.

"We'll determine if an additional fine is warranted after we complete a follow-up examination of the company's operations within the next six months," said Oregon Insurance Administrator Joel Ario.

The $17,500 fine was imposed after a review of company records dated July through September of 2001, completed this year, found that ODS still hadn't corrected a number of violations identified in earlier market conduct exams. These included:

• Failing to provide consumers with timely notice of their health insurance portability rights.
• Insuring associations that had not been approved as group policyholders by the Insurance Division.
• Issuing policies that didn't include mandated health care benefits.

The Insurance Division regulates insurance companies and agents doing business in Oregon. Copies of the division's enforcement actions are available on its Web site.

Final Order

Exhibit A