OKLAHOMA CITY — Insurance Commissioner Glen Mulready announced recently that Friday Health Plans of Oklahoma was placed into receivership due to insolvency of the company.
“Given the company’s financial situation, I determined this strong approach was a necessary step to protect policyholders,” he said. “Through this receivership we can take control of the company and determine the best path forward” for its approximately 8,200 Oklahoma members.
FHP-OK was placed into administrative supervision on April 4 while the company made reasonable attempts to increase its capital surplus. During this period of supervision, the Oklahoma Insurance Department closely monitored the company and determined that continued operation of FHP-OK was not possible, Mulready said.
Placing FHP-OK into receivership allows the state Insurance Department to assume day-to-day management of the company’s operations and to thoroughly examine the finances of the company. Members’ policies will remain in effect for now, and members must continue to pay their premiums to ensure continued coverage, Mulready advised.
FHP-OK policies will no longer be effective after August 31, 2023. To ensure FHP-OK members have an opportunity to replace their current policy before it is terminated on that date, the OID is coordinating with the Center for Consumer Information and Insurance Oversight to implement a special enrollment period. This period will allow FHP-OK members to select a new plan. However, members will need to act quickly to prevent a gap in coverage, Mulready emphasized.
The special enrollment period begins July 2 and ends on Oct. 30. If you purchased health insurance from FHP-OK through the Health Insurance Marketplace you must select a new Marketplace plan by Aug. 31 to avoid a gap in health insurance coverage, Mulready said. OID has set up a website to assist affected members with the process of selecting a new exchange health insurance plan.
Finally, providers should continue to service all FHP-OK members and should not demand payment other than the proper cost share associated with the medical service provided and relevant health plan, the commissioner said.
FHP-OK is a subsidiary of the Friday Health group. The Friday Health group is Colorado-based and provides health coverage to individuals and families in several states. The company was founded in 2015 and had been operating the FHP-OK HMO since 2021.
Several states, including Oklahoma, are placing the subsidiaries into receivership, a proceeding at the district court where a third party is appointed to take control of the company’s assets, finances, and operations and manage the company under the general supervision of the court.