Health insurance company Friday Health Plans collapses, thousands impacted
STATEWIDE, Colo. (KKCO) - More than 30,000 people in Colorado are being impacted by one health insurer after it announced it is closing its doors.
Friday Health Plans announced Thursday that it will cease operating. The insurance company operated in seven total states and hit financial troubles in Texas, which eventually spread through the rest of the company.
In a statement posted on its website, the company says that it had “grown incredibly quickly,” with its growth outstripping its ability to scale its financial infrastructure.
“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,” the company said.
In light of mounting financial troubles, Colorado regulators began prohibiting Friday from enrolling new members in the state last month.
If FHP cannot make it until the end of the year, the Colorado Life and Health Protection Association would step in to help members cover medical costs up to $500,000 each.
Copyright 2023 KKCO. All rights reserved.