Friday Health Plans is laying off all 323 of its employees as the company ends all of its business.
According to WARN Act documents Almosoa, Colo.-based Friday Health Plans submitted to the Colorado Department of Labor & Employment June 19, the company said it expects to lay off all of its employees between June 23 and July 6.
In the letter submitted to Colorado's labor department, Friday Health Plans CEO Elizabeth Bierbower wrote that the timing of the wind down of the business is "highly dependent on state regulators."
"The uncertainty and associated precipitous drop in revenue, and whatever decision state regulators make with respect to FHP's role in providing administrative services, which decision is outside of FHP's control, has created business circumstances that were not previously reasonably foreseeable," Ms. Bierbower wrote.
Friday Health Plans said June 1 that it would shutter its business. Regulators in the five states where Friday offered ACA exchange plans have taken various actions against the plans, including halting new memberships and taking over the company's assets.
On June 21, Colorado's Division of Insurance said it had taken over the company's operations in the state and would "do everything possible" to continue the plan's coverage through the end of the plan year.
The company had previously told employees they would receive 60 days' notice of their employment separation dates, according to emails obtained by the Alamosa News.
"As we have previously announced, Friday Health Plans is in the process of winding down operations in conjunction with regulators in the states where we operate. Unfortunately, as part of this process, the company will need to lay off its employees between June 23, 2023, and July 6, 2023," a Friday Health spokesperson said in a statement shared with Becker's. "The impacted employees will receive accrued time off and will be eligible for unemployment benefits subject to local regulations. We deeply appreciate our employees for all their hard work and dedication to Friday and its members."
State regulators have told Friday Health Plan members their coverage will end on July 31 in Georgia and Aug. 31 in North Carolina. Members can enroll in new coverage through a special enrollment period.