SANDY SPRINGS, Ga. — More than 25,000 Georgians are losing their Medicare Advantage coverage as metro Atlanta-based Sonder Health is being shut down by the state.
But Channel 2 Consumer Investigator Justin Gray, who was the first to report the company’s shutdown, has now learned many of those people were receiving hundreds of dollars for utilities.
Last month, a Fulton County judge placed Sandy Springs-based Sonder Health in receivership and liquidation, writing that Sonder is not in good standing to offer health insurance and that all Sonder policies were being terminated on Oct. 1.
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The court order says Sonder has a $47 million deficit, and 25,000 Georgians are being impacted.
Medicare Advantage plans, like Sonder, are allowed to provide small amounts of money for things like groceries and gas, but Gray has since learned that Sonder was handing out hundreds of dollars on debit cards.
“I would get $300 over the counter, $295 for pet supplies and gas and utilities and then $250 extra to help with food costs,” Vanessa Awtry said.
But her card, and the one her mother-in-law used, abruptly stopped working last month after the judge’s order.
“I was expecting to go to the store Saturday to pick up stuff. I called to check my balance. ‘Benefits are temporarily suspended,’” Awtry said.
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Insurance agent James Walker says all of those non-health extras they were providing are likely part of what led to Sonder’s financial problems.
“Even somebody like myself would love an additional $400 to $500 to pay for monthly expenses. But I think they overextended themselves. And that’s probably why they’re going under,” Walker said.
A special Medicare enrollment period is now open through October 31 for Sonder customers to enroll in new coverage.
Channel 2 Consumer Advisor Clark Howard recommends affected individuals consider moving to traditional Medicare plans, which he believes offer better coverage.
The insurance commissioner’s office reports that about 13,000 of the roughly 25,000 Georgia Sonder customers have already signed up for new coverage. Those who do not sign up will automatically be enrolled in a traditional Medicare plan.
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