Friday Health Plans is shutting down
Friday Health Plans, the insurance company offering health insurance to individuals, is shutting down.
Last week, Friday Health Plans of Georgia, Inc. was placed into receivership by Georgia officials to protect policyholders due to the company’s reported insolvency and inability to raise additional funds from outside investors.
Friday Health Plans, which had raised hundreds of millions in venture capital and debt funding, displayed the following message on its site: “Friday Health Plans has grown incredibly quickly, which is a testament to the strength of our mission of delivering affordability, simplicity and outstanding customer service. Unfortunately, Friday has been unable to scale our financial infrastructure to match the pace of our growth and secure the additional capital required to run our business. While we are deeply disappointed, we agree with the decision of our State regulators that it is necessary to wind down Friday’s business operations over time in accordance with the regulations in the states where we are operating.”
In the past few months, the company was banned from writing new business in several states, and in April it was placed under receivership by the Texas Department of Insurance and ordered to liquidate.