The Superior Court of Fulton County, Georgia placed Sonder Health Plans into receivership with the state’s insurance department on Aug. 13 due to the insurer’s reported “insolvency and inability to raise additional funds from outside investors.”
Sonder was placed into administrative supervision by the state on April 11. After a monitoring period of the company, it was determined “that continued operation of Sonder Health Plans was not possible without putting policyholders and providers at risk,” according to an Aug. 15 news release.
Sonder’s Medicare Advantage plan will terminate on Oct. 1, and CMS will implement a special enrollment period for members to choose another health plan. If a policyholder does not enroll in a new health plan, they will revert to original Medicare and will be auto-enrolled into a Medicare Part D plan covering prescription drugs. The special enrollment period runs from Aug. 13 to Oct. 31.
Sonder was founded in 2018 and had about 24,000 members across MA, C-SNP and D-SNP plans.
