SANDY SPRINGS, Ga. — Medicare Advantage Coverage Loss

More than 25,000 residents of Georgia have lost their Medicare Advantage coverage due to the state’s closure of Sonder Health, based in Metro Atlanta.

The situation gained attention when Channel 2 Consumer Investigator Justingray reported that many affected individuals were unexpectedly receiving hundreds of dollars for utilities.

A Fulton County judge recently placed Sonder Health into receivership and initiated liquidation, stating the company was not fit to provide health insurance. Consequently, all policies were terminated as of October 1.

According to court documents, Sonder Health has a deficit of $47 million, impacting 25,000 Georgians.

Typically, Medicare Advantage plans like Sonder can offer small sums for groceries and gas. However, Sonder appears to have been issuing much larger amounts on debit cards.

“We got $300 at the counter, plus $295 for pet supplies and gas, and an extra $250 for food costs,” shared Vanessa Outley.

Unfortunately, her cards, along with those used by her stepmother, ceased working last month following the judge’s decision.

“I was planning to go shopping on Saturday and wanted to check my balance first,” she added.

Insurance agent James Walker pointed out that these additional benefits might have contributed to Sonder’s financial issues. He noted, “It’s tempting—adding $400 or $500 to help with monthly expenses. But it seems they may have stretched themselves too thin, which likely led to their downfall.”

A special Medicare enrollment period is currently available until October 31, allowing former Sonder customers to select new coverage options.

Channel 2 Consumer Advisor Clark Howard suggests that those impacted consider switching to traditional Medicare plans.

Reports from the insurance board indicate that about 13,000 out of the roughly 25,000 clients affected have already enrolled in new coverage. For those who don’t register, they will be automatically placed in a traditional Medicare plan.