LAS VEGAS (KTNV) — Over 2,800 Nevadans will have to find new health insurance plans due to Friday Health Plans of Nevada winding down their operations in the Silver State.
According to the company's website, they were "unable to scale our financial infrastructure to match the pace of our growth and secure the additional capital required to run our business."
Friday Health Plans had entered into receivership proceedings last month. That's similar to bankruptcy proceedings. That allowed Nevada Division of Insurance Commissioner Scott Kipper to take over day-to-day operations of the company and examine its finances in order to determine the best option to protect policyholders and creditors.
"The primary responsibility of the Division of Insurance is to protect the consumers of the state," Kipper said last month. "Through this receivership, we can further evaluate the health of the company and determine how to best serve the interests of Nevadans."
According to court documents from the Eighth Judicial District Court in Clark County, officials with Friday Health Plans state the company had minimal assets and "continually ballooning liabilities". The documents state that due to the company's financial condition, Kipper said allowing them to continue operating "would further jeopardize the insurer's solvency".
Company officials said that coverage for existing members will end at midnight on Aug. 31. After that, there could be gaps in coverage. However, a special enrollment period will open to allow members to find a new health insurance policy on Nevada's Silver State Health Insurance Exchange. That's at NevadaHealthLink.com and it's open now through Oct. 31.
"Nevada Health Link is committed to offering quality and affordable health insurance options. We have a network of over 700 brokers and seven navigator entities across the state offering free enrollment assistance to any Nevadan who will experience a loss of coverage from Friday Health Plans," said Katie Charleson, Communications Officer for Nevada Health Link. "We encourage Nevadans to explore online or talk to an enrollment assister to find a new health plan that best fits you and your family and to see if you qualify for subsidies to help lower the cost of monthly premiums."
State officials said the company had been selling health insurance plans in Nevada since May 2020. It was a subsidiary of the Colorado-based Friday Health Plan Group. Court documents state the company's other locations, in states like Colorado, Texas, Georgia, Oklahoma, and North Carolina, are all now subject to regulatory and/or receivership control.
