Insurance Commissioner Causey Places Friday Health Plans of North Carolina Inc. Into Receivership

RALEIGH, North Carolina, June 21 -- The North Carolina Department of Insurance issued the following news release on June 20, 2023:

North Carolina Insurance Commissioner Mike Causey announced today that Friday Health Plans of North Carolina Inc. (FHP-NC) has consented to being placed into receivership to protect North Carolina policyholders due to its reported insolvency and inability to raise additional funds from outside investors.

The petition for receivership is expected to be filed with the Wake County Superior Court today and the receivership order will be posted on the North Carolina Department of Insurance website (www.ncdoi.gov) after the order is signed.

Coverage for FHP-NC's policyholders that have health insurance through the federally facilitated exchange will end at the end of the day on Aug. 31. To ensure FHP-NC's policyholders have an opportunity to replace their current exchange coverage before it is terminated, the North Carolina Department of Insurance has coordinated with the US 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 will begin on July 2 and end on Oct. 30. Consumers who purchased health insurance from FHP-NC through the federal exchange must choose a new exchange health insurance plan by Aug. 31 to avoid a gap in health insurance coverage.

Consumers that fail to choose a new plan by that date will still have until Oct. 30 to obtain coverage but will have a gap in coverage from the date all FHP-NC plans are terminated on Aug. 31 until the effective date of new coverage. A website to assist impacted members with the process of choosing a new exchange health insurance plan will be established with a link on the North Carolina Department of Insurance website.

Below are important dates to keep in mind:

* July 2-Special Enrollment Period Begins

* Aug. 31-Last Day to Enroll Without a Gap in Coverage

* Aug. 31-All FHP-NC Policies Are Terminated

* Oct. 30-Last Day of Special Enrollment Period

Finally, providers should continue to service all FHP-NC members and should not demand payment other than the proper cost share associated with the medical service and relevant health plan. Providers will be paid for all covered claims for services performed by Aug. 31 and will receive notification from FHP-NC in July.

FHP-NC is a subsidiary of the Friday Health Group. The Friday Health Group is Colorado-based and provides health coverage to individuals and families in multiple states. Other states have placed subsidiaries of the Friday Health Group into receivership.

Consumers seeking more information can contact the NCDOI help line at 855-408-1212 or by visiting www.ncdoi.gov.

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Original text here: https://www.ncdoi.gov/news/press-releases/2023/06/20/insurance-commissioner-causey-places-friday-health-plans-north-carolina-inc-receivership