Dive Brief:
- North Carolina announced this week it would place Friday Health Plans into receivership, becoming one of the latest states to take control of the insurtech as it winds down operations.
- The Denver-based insurer said it would shut down earlier this month after it failed to secure more cash to run the business. The company launched in 2015 and raised hundreds of millions to offer plans on the Affordable Care Act insurance marketplaces.
- In a press release, the North Carolina Department of Insurance said coverage for Friday policyholders will end Aug. 31. The state implemented a special enrollment period between July 2 and Oct. 30 so beneficiaries can find a new exchange plan.
Dive Insight:
Friday operated in seven states, though it didn’t offer plans in Texas and New Mexico this year. Now, the company is near its end.
Nevada state regulators officially took control of the insurer this week, though the state had begun the process earlier this month. Oklahoma Insurance Commissioner Glen Mulready announced Friday had been taken into receivership last week.
Friday announced plans to layoff its Colorado workforce by July and The Colorado Division of Insurance petitioned a district court in Denver for an order of rehabilitation for the insurer in the state, arguing the parent company’s insolvency threatens operations in Colorado. In a press release, the DOI said Friday’s board of directors had consented to the order.
“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. We believe this action is in the best interest of our members. We deeply appreciate our employees for all their hard work and dedication to Friday and are grateful for their support as we manage this process,” Friday wrote in a statement on its website.
Friday isn’t the only insurtech that has recently struggled to gain a financial foothold. Bright Health is hoping to sell its Medicare Advantage plans in California, which would remove it from the insurance business entirely. The company had previously exited the ACA marketplaces and cut its Medicare Advantage plans in other states.
Oscar Health will exit the California marketplace after this year, though newly appointed CEO Mark Bertolini said last month that the insurtech planned to eventually return to the state. Oscar posted a narrower net loss of $39.6 million in the first quarter.
