North Carolina puts Friday Health plans into receivership
The move is due to its reported insolvency and inability to raise additional funds from outside investors.
Photo: Bloom Productions/Getty Images
Following on the heels of Georgia, North Carolina Insurance Commissioner Mike Causey said this week that Friday Health Plans of North Carolina has consented to being placed into receivership, due to its reported insolvency and inability to raise additional funds from outside investors.
The State of Georgia made a similar move earlier this month, placing Friday Health Plans of Georgia into receivership for essentially the same reasons.
The new receivership order will be posted on the North Carolina Department of Insurance website after the order is signed.
WHAT'S THE IMPACT?
Coverage for FHP-NC's policyholders that have health insurance through the federally facilitated exchange will end at the end of the day on Aug. 31.
To ensure policyholders have an opportunity to replace their current exchange coverage before it is terminated, the North Carolina Department of Insurance has coordinated with the U.S. Center for Consumer Information and Insurance Oversight to implement a special enrollment period for members to select another exchange health insurance plan.
The special enrollment period will begin on July 2 and end on October 30. Consumers who purchased health insurance from FHP-NC through the federal exchange must choose a new exchange health insurance plan by Aug. 31 to avoid a gap in health insurance coverage.
Consumers that fail to choose a new plan by that date will still have until October 30 to obtain coverage but will have a gap in coverage from the date all FHP-NC plans are terminated on August 31 until the effective date of new coverage. A website to assist impacted members with the process of choosing a new exchange health insurance plan will be established with a link on the North Carolina Department of Insurance website.
The agency said providers should continue to service all FHP-NC members and should not demand payment other than the proper cost share associated with the medical service and relevant health plan. Providers will be paid for all covered claims for services performed by August 31 and will receive notification from FHP-NC in July.
THE LARGER TREND
A few weeks ago, Georgia's Office of Commissioner of Insurance and Safety Fire 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.
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.
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
