Friday Health Plans
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Friday Health Plans was a health insurer selling individual and family plans on Affordable Care Act exchanges across multiple states, including Colorado, Georgia, Nevada, New Mexico, North Carolina, Oklahoma and Texas. It grew rapidly as a price-competitive exchange carrier across seven states before its finances deteriorated and state regulators intervened in 2023.
02 / Friday Health Plans FAILURE REASONS
Failure factors
Colorado Sun (18 Jul 2023) quotes Friday’s own website statement: failure from growing too fast, inability to scale financial infrastructure with that growth, and failure to secure additional capital needed to run the business—preceding multi-state regulatory liquidation.
Company said it could not scale financial infrastructure to match growth pace.
Company said it could not secure the additional capital required to run the business.
Company attributed failure to too-fast growth.
03 / EVENT HISTORY
Events in the structured record
- Asset restructuring
Colorado DOI took control of Friday Health Plans of Colorado on 21 Jun 2023, placing it into rehabilitation after financial concerns.
- Liquidation
DOI 17 Jul 2023 advisory and receivership site: court ordered liquidation effective 1 Sep 2023; Colorado coverage ended 31 Aug 2023; other states had already terminated Friday plans.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
Price-competitive insurer on ACA exchanges in 7 states
- 02
Surplus deficiencies surface; states impose supervision
- 03
Insolvent and unable to raise capital; placed into receivership
- 04
Liquidation orders take effect September 1, 2023; policies terminated