Benefytt Technologies Files for Chapter 11 Bankruptcy in Texas

Benefytt Technologies Inc. has filed for Chapter 11 bankruptcy protection in the Southern District of Texas, according to a court filing.

• The health insurance firm’s liabilities are as much as $1 billion, while its assets are as much as $10 billion
• The Tampa, Florida-based company plans to secure $35 million of debtor-in-possession financing to fund itself through Chapter 11, court papers show
• Private equity firm Madison Dearborn Partners bought Benefytt in 2020 for $625 million
• The US Securities and Exchange Commission and the Federal Trade Commissiontook action against Benefytt in 2022 for misleading marketing, “sham health plans,” and junk ...