The Georgia Office of Commissioner of Insurance and Safety Fire, the state’s insurance regulators, just announced that the ACA insurer, Friday Health Plans, will be shutting down mid-year in Georgia because there are substantial doubts that Friday has the ability to pay all claims if they continue to operate.
Friday Health Plans was placed into administrative supervision on March 8, 2023, by consent order to try to cure its surplus deficiency reported to our office on March 3, 2023. During this period of enhanced supervision our office has closely monitored the Company and determined that continued operation of Friday Health Plans was not possible without putting policyholders at risk, so we are acting to protect them.
Friday Health Plans policyholders that have health insurance coverage through the federally facilitated exchange – Your health insurance coverage will end at the end of the day on July 31, 2023. To ensure Friday Health Plans policyholders have an opportunity to replace their current exchange coverage before it is terminated, effective August 1, 2023, our office coordinated with the federal office known as the Center for Consumer Information and Insurance Oversight to implement a special enrollment period for members to select another exchange health insurance plan.
The special enrollment period starts on June 1, 2023, and ends on September 29, 2023. If you purchased health insurance from Friday Health Plans through the federal exchange you must choose a new exchange health insurance plan by July 31, 2023
So what does this mean?
If you are not insured via the ACA, this means nothing.
If you are insured via the ACA in Georgia but with a different company [DISCLOSURE: I have consulted with Alliant Health Plans, another Georgia ACA company, on a few different topics in 2023], this means very little. In some counties, the benchmark may be reset if Friday had the cheapest or 2nd cheapest silver plan, which may slightly increase affordability for plans in the 2nd half of the year.
If you are insured via Friday in Georgia, this means something:
- If you continue to pay your premium to Friday, your coverage ends on July 31.
- If you want to continue to be insured, you need to pick a new insurance company ASAP
- There is no indication that deductibles and other cost-sharing will roll over
- There is no indication of an automated crosswalking process.
- Manual action will be needed to keep coverage
Now the only surviving insura-tech from the 1st and 2nd wave of VC money bonfires is OSCAR as BRIGHT is effectively gone and FRIDAY is going… more thoughts on this later this week.