Friday Health Plans will not offer coverage on the ACA marketplaces in Texas and New Mexico for 2023, The Alamosa Valley Courier reported Nov. 4.
A Friday spokesperson told the newspaper that Texas insurance regulators asked the company to pause operations in the state following operational challenges.
"Texas was our largest state in terms of the numbers of members. We enrolled more members than we anticipated which meant increased costs of operation," the spokesperson said. "Other companies around the nation are doing this, as well.”
According to the report, pulling out of the two states has led to rumors about a potential 80 percent reduction in Friday's workforce.
"We don’t have a timeframe on this yet," the spokesperson told the Courier. "It will depend upon the number of members who enroll during the open enrollment period that started on Nov. 1."
For 2023, the company is offering ACA plans in Colorado, North Carolina, Georgia, Nevada and Oklahoma. It is in good standing with insurance regulators in those five states and plans to re-enter the Texas marketplace in 2024.
The Friday exit coincides with Bright Health ending all ACA business in 2023, including in Texas. Bright had over 278,000 customers on the state's exchange in 2022 and Friday had over 263,000, according to a Nov. 1 report from the Dallas Morning News.