Attention Georgia agents: Effective October 1, 2025, Sonder Health Plans Medicare Advantage plans will be terminated due to the carrier’s insolvency and ensuing liquidation.
Georgia’s State Department of Insurance announced Sonder Health Plans’ receivership on August 15. Here’s what you need to know to help affected policyholders through the disruption.
Sonder Health Plans Coverage Termination Notice
Sonder Health Plans is under an order of liquidation due to financial difficulties. Members should have received a termination of coverage notice in the mail. This affects all policyholders with their 2025 Medicare Advantage plans, including Chronic Condition Special Needs Plans (C-SNPs), and Dual Eligible Special Needs Plans (D-SNPs).
It’s imperative agents make sure affected clients know that their Sonder Health Plans coverage is ending and they have a Special Enrollment Period (SEP) to select new coverage.
Agents should make sure affected clients know their Sonder Health Plans coverage is ending and they have an SEP to select new coverage.
Special Enrollment Period for Sonder Health Plans Members
Individuals affected by Sonder Health Plans’ liquidation have an SEP, running now through October 31, 2025, to select a new Medicare Advantage plan.
If a member selects new coverage, it will be effective the first day of the following month.
New Coverage Effective Date Based on Enrollment Date
You may help your clients use this SEP to select a prescription drug plan if they wish to have Original Medicare. They will also have a guaranteed issue right to select a Medicare Supplement plan if this is the case.
What If My Client Does Not Use the SEP?
If you have clients who do not utilize this SEP and their Sonder Health Plans coverage is terminated, they will be transitioned to Original Medicare and auto-enrolled in a prescription drug plan.
Commissions
According to the receivership site, “Commissions will be paid in accordance with the Georgia law governing the priority of distributions and the availability of assets in the Sonder Health Plans liquidation estate.”
The receivership website states agents should file a proof of claim ASAP but no later than April 1, 2026.
Sonder is attempting to resolve this matter with the state of Georgia, however, we cannot predict if they can come to a successful resolution given the short timeframe. For more information, please visit SonderHealthPlans-InReceivership.com.
Not affiliated with or endorsed by Medicare or any government agency.
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