Friday Health Plans of North Carolina has consented to be placed into receivership due to reported insolvency and inability to secure funds. Coverage for policyholders through the federally facilitated exchange will end on August 31. A special enrollment period from July 2 to October 30 allows members to select a new health insurance plan. Providers should continue servicing members, and a website will assist with plan selection. Similar actions were taken in Georgia and other states.
Friday Health Plans of North Carolina has agreed to be placed into receivership by the North Carolina Insurance Commissioner, Mike Causey. The decision was made in response to the company’s reported insolvency and its inability to secure additional funds from external investors. This move follows a similar action taken in Georgia, where Friday Health Plans of Georgia was also placed into receivership for similar reasons.
Once the order is signed, it will be posted on the North Carolina Department of Insurance website. However, this development has significant implications for policyholders covered by Friday Health Plans of North Carolina through the federally facilitated exchange. Their coverage will terminate on August 31. To address this, the North Carolina Department of Insurance has worked with the U.S. Center for Consumer Information and Insurance Oversight to establish a special enrollment period. During this period, members can select a new exchange health insurance plan to replace their current coverage before it expires. The special enrollment period will begin on July 2 and end on October 30.
Policyholders who had purchased health insurance from Friday Health Plans of North Carolina through the federal exchange must choose a new plan by August 31 to avoid a coverage gap. If they fail to do so by that date, they will still have until October 30 to obtain new coverage. However, they will experience a gap in coverage from August 31 until the effective date of their new plan. The North Carolina Department of Insurance will establish a website with a link on its official site to assist impacted members in selecting a new exchange health insurance plan.
Providers are advised to continue servicing all Friday Health Plans of North Carolina members and should only seek proper cost-sharing associated with the medical services and the relevant health plan. FHP-NC will notify providers of covered claims for services performed by August 31, and they will receive payment accordingly in July.
This recent development is part of a larger trend. The Office of the Commissioner of Insurance and Safety Fire in Georgia had previously determined that Friday Health Plans could not continue operating without jeopardizing policyholders. This decision could result in approximately 35,000 Georgians losing their coverage. Enrollees in other states, such as Colorado, will also be affected. It is estimated that around 30,000 Coloradans will need to find new coverage.
Friday Health Plans, established in 2015, has been facing difficulties for some time. In 2022, the company withdrew from Texas and New Mexico, limiting its plans to just five states in 2023. Texas regulators had previously seized the company’s assets and began liquidation, while operations in Oklahoma came under regulatory supervision last month.