Texas regulators seize and liquidate Friday Health
“It will be one of the largest health insurance failures ever. After almost $300 million in losses in just three years and ending with a quarter-billion-dollar liability, the Texas Department of Insurance moved to liquidate Friday Health Plans’ Texas subsidiary.”
They were able to turbo-charge growth by underpricing their product. They missed badly. They had explosive growth and with explosive growth, they suffered explosive losses.
Consumers will be made whole through the Texas Life and Health Insurance Guaranty Association.