Friday Health Plans placed into receivership in Georgia
This could result in a loss of coverage for about 35,000 Georgians, with enrollees in other states affected as well.
Photo: CasaraGuru/Getty Images
Friday Health Plans of Georgia will be placed into receivership due to its reported insolvency and inability to raise additional funds from outside investors, according to the state's Office of Commissioner of Insurance and Safety Fire.
The insurtech was placed into administrative supervision on March 8 by consent order to try to cure its surplus deficiency, which was reported to the OCI office on March 3.
During this period of enhanced supervision, the OCI 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.
WHAT'S THE IMPACT
Friday Health Plans policyholders that have health insurance coverage through the federally facilitated exchange will see their coverage end on July 31. To ensure those policyholders have an opportunity to replace their current exchange coverage before it's terminated, the state coordinated with the federal 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 starts June 1 and ends on September 29. If someone purchased insurance through Friday Health Plans through the federal exchange, they have to choose a new exchange plan by July 31 to avoid a gap in coverage.
OCI has set up a website to assist members with the process of choosing a new plan.
The agency advised that providers should continue to service all Friday Health Plans 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 prior to August 1.
Friday Health Plan issued a statement saying it had been unable to scale its financial infrastructure to match the pace of its growth.
"While we are deeply disappointed, we agree with the decision of our State regulators that it is necessary to wind down Friday's business operations over time in accordance with the regulations in the states where we are operating," the company said. "We believe this action is in the best interest of our members."
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.
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
