Colo. Insurance Division: Statement From Colorado Insurance Commissioner on Friday Health Plans

DENVER, Colorado, June 6 -- The Colorado Department of Regulatory Agencies' Division of Insurance posted the following statement from June 1, 2023:

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The Colorado Division of Insurance (DOI), part of the Department of Regulatory Agencies (DORA), has been closely monitoring and supervising the performance of Friday Health Plan of Colorado, Inc. (HMO) since June of 2022. In recent months, it became clear that the parent company, Friday Health Plans, Inc. (Parent), would need to raise substantial capital in order to continue. The company was ultimately unable to raise that capital, and has informed the DOI that it will begin to wind down its business activities throughout the country, working in close conjunction with state regulators. In response, Colorado Insurance Commissioner Michael Conway has issued the following statement.

"The Colorado Division of Insurance will work with Friday Health to manage the wind down of the company. Currently, based on the company's financial reporting, the Colorado licensed entity, Friday Health Plan of Colorado, has sufficient capital to continue for the remainder of 2023. However, the Division will continue to closely monitor the company as this situation evolves.

"Friday's problems are national - the company's aggressive growth in other states around the country got ahead of their financing. While Friday Health Plan of Colorado has maintained the capital required by Colorado law, the problems in other states and with the parent company are now impacting the company here.

"The Colorado Division of Insurance has been monitoring the situation and has taken steps to protect Coloradans. We worked with the Legislature this past session to get HB23-1303 passed. This legislation offers protections to both consumers and health care providers in the event of the failure of a company licensed as a HMO, which is the case for Friday Health Plan of Colorado. In addition, in May, the Division stopped all new enrollment in Friday's plans. While insurance companies, like any business, do on occasion fail, we have taken steps to protect Coloradans and we will continue to do that as the company winds down its business."

The Division will share more information as it becomes available. Please refer to this list of Frequently Asked Questions (FAQs) concerning this situation with Friday Health. The Division will continue to update this list of questions as the situation evolves.

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Original text here: https://doi.colorado.gov/news-releases-consumer-advisories/statement-from-colorado-insurance-commissioner-on-friday-health