Mind Uncharted Explore. Discover. Learn.
Friday Health Operations in Texas Placed in Liquidation
Insurer Experienced Problems Due to Rapid Growth in Texas
Texas regulators have placed the remaining operations of Friday Health in Texas in liquidation, according to a copy of an order posted by the Texas Department of Insurance. Cantilo & Bennett has been appointed as the special deputy receiver to manage the insurer’s daily operations. Friday Health says that this development only affects its business in Texas and that it remains committed to providing affordable health insurance to its growing membership.
Friday Health’s Business in Other States Not Affected
It is unclear how many enrollees Friday Health still has in Texas. The Alamos, Colorado-based insurer announced in 2023 that it would continue to offer Affordable Care Act health plans in Colorado, Georgia, Nevada, North Carolina, and Oklahoma in 2023 but would withdraw from New Mexico and Texas. Other health insurers that are reducing their market footprints this year include Oscar Health. Bright Health has withdrawn from the Affordable Care Act exchange program altogether.
Friday Health’s Rapid Growth in Texas Blamed for Problems
Friday Health, originally known as Melody Health Insurance, was founded in 2015 by health care technology industry veterans. In May 2023, the company secured $120 million in new capital from a group of investors led by Leadenhall Capital Partners. At that point, it had 330,000 enrollees and about $2 billion in total revenue for 2023. The insurer offers features such as unlimited free mental health visits and access to thousands of generic drugs with no out-of-pocket cost. However, the company says that it experienced problems in Texas due to its rapid growth there.
Conclusion
In conclusion, Friday Health has had its remaining operations in Texas placed in liquidation due to issues related to rapid growth. The company stated that its operations in other states are not affected and that it continues to provide affordable health insurance to its growing membership. The list of insurers reducing their market footprints this year includes Oscar Health and Bright Health, with the latter withdrawing from the Affordable Care Act exchange program altogether.
Pictured: Austin, Texas. (Photo: Adobe Stock)
