Texas to Liquidate What's Left of Friday Health's Operations in the State
"This development in Texas does not impact our business or operations in any other states," the insurer explained.
Texas regulators have placed the remaining Friday Health operations in Texas in liquidation.
The state has picked Cantilo & Bennett to act as the special deputy receiver and administer the plan’s day-to-day operations, according to a copy of an order posted by the Texas Department of Insurance.
“This development in Texas does not impact our business or operations in any other states,” Friday Health said. “We remain committed to our mission to provide simple, high-quality, affordable and easy-to-use insurance to our growing membership.”
It’s not clear how many enrollees Friday Health still has in Texas. The Alamos, Colorado-based insurer announced in 2022 that it would continue to offer Affordable Care Act health plans in Colorado, Georgia, Nevada, North Carolina and Oklahoma in 2023 but would pull out of New Mexico and Texas.
The list of health insurers reducing their market footprints this year also includes Oscar Health. Another insurer, Bright Health, pulled out of the Affordable Care Act exchange program entirely.
Health care technology industry veterans founded Friday Health, which was originally known as Melody Health Insurance, in 2015.
The company said in May 2022, when it announced that it had secured $120 million in new capital from a group of investors led by Leadenhall Capital Partners, that, at that point, it had 330,000 enrollees and about $2 billion in total 2022 revenue.
Friday Health has worked to attract consumers’ attention by offering features such as unlimited free mental health visits and access to thousands of generic drugs with a $0 out-of-pocket cost. The company says it ran into problems in Texas because it grew too quickly there.
Pictured: Austin, Texas. (Photo: Adobe Stock)