The Georgia Office of the Commissioner of Insurance and Fire Safety (OCI) has announced that Sonder Health Plans, Inc. has been placed into receivership by court order due to insolvency. The company’s Medicare Advantage plans are set to terminate on October 1, 2025.
According to OCI, Sonder Health Plans entered receivership on August 13, 2025, after being placed under administrative supervision on April 11, 2025. This was due to insolvency and an inability to raise additional funds. During this period, OCI closely monitored the company and determined that continued operations would put policyholders and providers at risk.
Sonder Health Plans policyholders with Medicare Advantage, Chronic Special Needs, or Dual Eligible Special Needs plans will not lose Medicare coverage despite the termination of the Sonder Medicare Advantage plan on October 1, 2025. A special enrollment period is available from August 13 to October 31, 2025, allowing members to choose replacement plans from other insurers. Those who do not select a plan will revert to Original Medicare and be auto-enrolled in a Medicare Part D plan. Providers must continue servicing all members and may only charge the proper cost share under each member’s plan.
Sonder Health Plans has been placed into rehabilitation and will enter liquidation effective October 1, 2025. This follows a Fulton County Superior Court consent order due to insolvency and financial instability that threatened policyholders, creditors, and the public. The Georgia Insurance Commissioner is appointed as Liquidator to take control of Sonder’s assets, oversee the company’s closure, coordinate with affiliates, and ensure all policyholders maintain Medicare coverage or enroll in alternative plans. The company’s officers, directors, and agents are barred from transferring assets or conducting business.
The OCI manages insurance regulation and building safety in Georgia with a mission to protect families and ensure access to essential insurance products through fair oversight that supports economic opportunity. John F. King has served as Commissioner since 2019 and became the first Hispanic statewide official in Georgia when elected to a full term in 2022. His background includes decades in law enforcement as Doraville’s Chief of Police and a military career as a U.S. Army Major General. King holds advanced degrees in criminal justice and strategic studies.