During its eight years in operation, Friday Health Plans grew quickly and now has fallen just as fast.
Last week, the company announced it would cease operations by the end of the year in the seven states in which it does business. Friday covers between 300,000 and 400,000 in the states of Colorado, Georgia, Texas, Nevada, New Mexico and Oklahoma and employs between 300 and 400 employees, the Alamosa (Colo.) Daily Courier reported. Friday is based in Alamosa.
“Friday Health Plans has grown incredibly quickly, which is a testament to the strength of our mission of delivering affordability, simplicity and outstanding customer service,” the company said on its website. “Unfortunately, Friday has been unable to scale our financial infrastructure to match the pace of our growth and secure the additional capital required to run our business. 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.”
Friday stopped offering coverage in Texas and New Mexico in November amid concerns about the increasing costs of enrolling more members.
Colorado regulators began prohibiting Friday from enrolling new members in the state last month. If Friday Health Plans cannot make it until the end of the year, the Colorado Life and Health Protection Association would step in to help members cover medical costs up to $500,000 each.
In late May, Nevada Insurance Commissioner Scott Kipper filed legal action with the Nevada District Court to place Friday Health Plans of Nevada under receivership due to growing concerns about the “reliability of Fridays. financial reporting to the Division.”
Also in May, regulators in Georgia forced Friday Health into receivership due to “reported insolvency and inability to raise additional funds from outside investors.”
In April, Friday Health Plans of Oklahoma was placed under the supervision of the Oklahoma Insurance Department, insurance commissioner Glen Mulready announced. Also in April, the North Carolina Department of Insurance placed the company in a state of “suspended suppression,” effectively barring the company from selling any more insurance.
On March 23, the Texas Department of Insurance placed Friday Health Insurance Company Inc. (Texas) into liquidation in that state. Texas Insurance Commissioner Cassie Brown was appointed to liquidate and take possession of the company.
And in November, health insurance agents who told InsuranceNewsNet that the carrier had not paid them commissions since the end of August received those payments for the months of September and October.
Friday Health was founded in 2015 when Sal Gentile and David Pinkert bought the Alamosa-based insurance company Colorado Health Plans Inc. They soon renamed the company Friday Health Plans.
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