North Carolina insurance regulators have placed Friday Health Plans of North Carolina in receivership due to its insolvency.
The petition for receivership was filed with the Wake County Superior Court. Insurance Commissioner Mike Causey said the parent company was unable to raise additional funds from outside investors. In April, Causey had stopped the company from selling any more coverage in the state.
According to the Department of Insurance, Friday Health Plans collected just more than $83 million in premiums in 2022 and incurred $63.8 million in losses during the year. About 39,000 people in North Carolina have health insurance through Friday Health.
Coverage for policyholders will end on Aug. 31. Starting on July 2, consumers can apply for new health insurance through the U.S. Center for Consumer Information and Insurance Oversight.
Friday Health Plans’ parent company is based in Colorado. Regulators in Nevada, Oklahoma and Georgia have also placed the company’s operations in those states in receivership.
On its website, Friday Health Plans states, “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. 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.”
The company had raised more than $300 million from private investors.