Colorado Division of Insurance: It's in the best interest of consumers

ALAMOSA — Embattled insurance company Friday Health has agreed with the Colorado Division of Insurance (DOI) to cease offering new insurance in Colorado.

Friday Health has experienced a dramatic downsizing in both the number of employees it has and the number of insured customers.

In November of 2022, the company announced it was voluntarily pulling out of New Mexico and agreed with regulators in Texas to cease operations there

The company announced it would lay off 98 employees in late February. Most of the layoffs occurred in Alamosa.

The Georgia Office of Commissioner of Insurance and Fire Safety placed Friday Health Plans of Georgia into Administrative Supervision as of March 8 due to the "direct result of the insolvent financial condition reported in the year-end 2022 financial statement filing received on March 3. 2023. Furthermore, this action by the Commissioner's office demonstrates a proactive response to the company's financial condition in the pursuit of protecting the Georgia policyholders of the company."

In late March, the Texas Department of Insurance seized and liquidated the company's operations in that state.

In an update on the Texas liquidation, Ari Gottlieb, a healthcare analyst with A2 Strategic, told the Valley Courier Friday Health in Texas has a negative equity valuation of $377.2 million, about $100 million more than previous estimates.

On April 5, Oklahoma Insurance Commissioner Glen Mulready announced that he placed Friday Health Plans of Oklahoma, Inc. (Friday Health) under the Oklahoma Insurance Department's (OID) supervision.

At the time, Oklahoma Commissioner Mulready stated, "The decision to place Friday Health under supervision was not taken lightly. However, given the company's financial situation, we determined this was the best action to protect policyholders and ensure their claims are paid."

As of May 9, Friday Health Plans will not accept any new enrollments in Colorado. The Colorado Division of Insurance (DOI) will continue to evaluate recent actions in other states where Friday operates and the financial position of the company.

As a result of this action, consumers in Colorado who are not already enrolled in a Friday plan will not be able to select a Friday plan through Connect for Health Colorado — the state's health insurance exchange.

Colorado consumers who are already enrolled in a Friday plan for 2023 will continue to stay in their current plan for the year. Current Friday Health Plan enrollees will still be able to update their plan with household changes and life events such as births or marriage, meaning they can add members to existing policies when those life events happen.

Chief Executive Officer of Connect for Health Colorado, Kevin Patterson, released the following statement, "I want to assure Friday Health Plans customers who are enrolled through Connect for Health Colorado or Colorado Connect that their coverage remains in place. This news only affects new customers, who will not have Friday Health Plans as an option when they are shopping for 2023 coverage.

“We're working closely with the Division of Insurance as they continue to evaluate Friday Health Plans' situation in Colorado so we can provide the best guidance possible to current customers and our network of Brokers and Assisters."

The Valley Courier has asked Friday Health CEO Beth Bierbower for comment and received this response attributed to "a Friday Health Plans spokesperson, "Friday Health Plans has grown incredibly quickly in Colorado and reached our maximum expected enrollment for the 2023 plan year, which is a testament to the strength of our offering for members in the state. This development does not impact Colorado Friday members, who continue to have coverage and access to their benefits. Our team remains focused on ensuring our members get the most out of our comprehensive, differentiated plans."

Consumers who currently have Friday Health coverage who have questions about their coverage, should contact Friday Health using the information on their health insurance cards. If people experience problems with their Friday Health insurance, they can contact the Colorado Division of Insurance Consumer Services Team at 303-894-7490.