Nevada becomes the latest to liquidate Friday Health Plans
The plans had operated in seven states; Nevada is now the last of them to place it into receivership, which will affect about 2,000 residents.
Photo: Pichsakul Promrungsee Eyeem/Getty Images
Less than a week after Colorado decided to move Friday Health Plans into liquidation, the state of Nevada is following suit, announcing that it would liquidate the insurtech's health plans in the state and provide details on how residents can find new coverage.
Friday Health Plans had operated in seven states; Nevada is now the last of them to place it into receivership, which will affect about 2,000 residents of the state. The effective date for the liquidation will be September 1.
WHAT'S THE IMPACT?
A special enrollment period will open for existing members to enroll in a new health insurance policy on Nevada's Silver State Health Insurance Exchange, the state agency overseeing the online health insurance marketplace, NevadaHealthLink.com, before the current coverage is terminated.
The special enrollment period through NevadaHealthLink.com is open now through October 31 for any Nevadans who lost health insurance through Friday Health Plans, including those with plans on or off the marketplace.
To avoid a gap in coverage, members will have to enroll in a new health insurance plan on or before August 31. Consumers who fail to enroll in a new plan by that date will still have until October 31 to purchase health insurance, but they may experience a gap in coverage.
Officials from the Nevada Division of Insurance advised providers that they should continue to service all members through August 31, and should not demand payment other than the proper cost share associated with the medical service and relevant health plan. Once in liquidation, the Nevada Life and Health Insurance Guaranty Association will address provider claims for services performed on or before August 31, in accordance with the policy and Nevada law.
THE LARGER TREND
Friday Health Plans was launched in 2015. The Colorado Sun reported that the demise of the company had been brewing for some time; in 2022 the company pulled out of Texas and New Mexico and, as a result, offered plans in only five states in 2023.
Earlier this year, Texas regulators seized the company's assets in that state and began liquidating them, while operations in Oklahoma were placed under regulatory supervision last month.
Several weeks ago, Georgia's Office of Insurance and Safety Fire Commissioner determined that continued operation of Friday Health Plans was not possible without putting policyholders at risk. According to the Atlanta Journal-Constitution, this could result in a loss of coverage for about 35,000 Georgians. Enrollees in other states will be affected as well, with the Colorado Sun estimating that about 30,000 Coloradans will need to seek new coverage.
North Carolina placed Friday Health plans into receivership in June.
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
