Friday Health Plans is shuttering its business nationwide after several states moved to pause new enrollments or regulate the company's finances.
"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," the company wrote on its website June 1. "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."
Alamosa, Colo.-based Friday was founded in 2015 and offered individual and small group plans both on and off the exchange. For 2023, the company offered ACA plans in Colorado, North Carolina, Georgia, Nevada and Oklahoma. Previously, it had also offered health coverage in Texas and New Mexico. In May 2022, Friday had 330,000 members and projected $1.95 billion in year-end revenue. In Texas specifically, the company recorded a $244 million shortfall at the end of last year.
On May 31, Georgia regulators placed Friday Health Plans into receivership due to insolvency and an inability to raise additional funds from outside investors.
Georgia's Office of Insurance and Safety Fire Commissioner said it had been supervising Friday Health's operations in the state since March 8, "to try to cure its surplus deficiency," but the state determined continued operations were not possible without putting members at risk, according to a May 31 news release.
Coverage through Friday will end in Georgia on July 31. A special enrollment period started June 1 and runs through Sept. 29 to help members find new coverage.
In March, Texas placed the company into liquidation and ordered it to end all business in the state because it was insolvent and had not maintained a minimum surplus. Oklahoma has been supervising the company since April over concerns about its "declining financial situation," and North Carolina and Colorado suspended new member enrollment for the remainder of 2023.
Friday's CEO is Beth Bierbower, Humana's former president of group and specialty benefits. The company's CFO is Rhonda Bagby, who was most recently vice president of finance and commercial at Bright Health.