323 employees to be let go

DENVER and ALAMOSA — The Colorado Division of Insurance has petitioned the Denver District Court to be granted control of the assets of Friday Health Plans. On June 7, the court granted the division permission to seize Friday Health Plans.

The division has now petitioned the court for an order for rehabilitation that if granted, “under such an order, the Colorado Insurance Commissioner will be appointed as receiver, with the authority to administer the company's assets. As the receiver, the Commissioner is granted authority to take any necessary actions to protect policyholders, creditors, claimants, and the public," according to the division.

If the order is granted, it will give Colorado Division of Insurance Commissioner Michael Conway authority to manage the day-to-day affairs of Friday Health Plans.

Vince Plymel a spokesman for the division stated, "The Commissioner is named as the receiver. The Commissioner, as receiver, will be given the authority to take possession of the assets of Friday Health Plans of Colorado, as well as the administration of those assets. As receiver, the Commissioner would also have the same authority as the company's directors and officers to take any necessary actions for the company.”

Also on June 21, the Nevada Department of Insurance issued a press release stating a court in that state has placed Friday Health (Nevada) into receivership and that, "This order allows Commissioner Kipper, through an appointed special deputy receiver, to take over the day-to-day operations of the company and to thoroughly examine its finances in order to determine the best option to protect policyholders and creditors — either by rehabilitating and returning the company to private management or by liquidating the company.”

Although Friday Health and the Colorado Division of Insurance had agreed the company would operate through this year, Friday Health abruptly abrogated that agreement. On June 19, the company emailed employees informing them it was accelerating shutting down the company and will lay off all Alamosa and Denver employees between June 23 and July 6.

According to documents obtained from the Colorado Department of Labor and Employment, Friday Health will terminate 323 employees.

Alamosa Mayor Ty Coleman issued this statement regarding the layoffs, "It's sad to see one of our major employers close its doors and layoff over 300 people in our community. While in operation Friday Health Plans was a good community partner and provided a healthy and positive work environment for the people who worked there. My heart goes out to the employees and their families. I'm hopeful the employees will find opportunities in the community during these challenging times."

If the Denver District Court approves the order for rehabilitation, the Colorado Division of Insurance will assume control over the assets of Friday Health including its buildings in downtown Alamosa. The company was also engaged in a contract with the City of Alamosa to pave a parking lot downtown and cover 25% of the cost.

Alamosa City Manager Heather Brooks told the Valley Courier, "We were very disappointed to read the news that Friday Health operations will be ending sooner than expected. The impact on the remaining employees will be significant and we are hopeful that any employers who have openings will be able to absorb some of that impact but realize that many will be without employment.

"Compared to that, the City's issue of needing to collect the remaining 25% of the funds for the 6th Street Parking Lot feels small. However, the City takes Friday Health's commitment to pay the final 25% seriously and we will be closing out that agreement by the end of this week. We will issue our request for final payment and assume that Friday Health will honor that agreement until told otherwise."