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Friday Health Plans Inc., a
Texas-based health insurance startup, has been placed under receivership by
the Texas Department of Insurance and ordered to liquidate. The Travis County
District Court found Friday Health to be insolvent, with total liabilities
exceeding its admitted assets and total adjusted capital less than what is
required under the Texas Insurance Code. The company launched in 2015 and
focused on marketplace products, later expanding to Individual Coverage
Health Reimbursement Arrangements (ICHRAs). But like other startups, it struggled to reach profitability or substantial market share. Prior to
the receivership, Friday enrolled 293,111 members in Texas, making it the
fourth-largest exchange insurer in the state. Members will continue to
receive benefits until the company fully winds down operations, according to
Friday Health’s website. The insurer continues to serve an additional 88,580 members
in six other states; Colorado, Georgia, Nevada, New Mexico, North Carolina
and Oklahoma. |
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