September 9, 2025
Sonder’s customer base was comprised largely of Atlanta’s senior citizen population, leaving many without vital extra income.
Medicare Advantage provider Sonder Health abruptly stopped operations, leaving thousands of Georgians without vital health insurance perks.
On Aug. 13, a Fulton County judge placed Sonder Health into receivership and liquidation. A court order on file cited a financial shortfall of approximately $47 million. The receivership effectively terminated all of the company’s policies as of Oct. 1, according to a press release. With the termination, customers lost hundreds of dollars in food and cash assistance. The move affects more than 25,000 members across the metro Atlanta area.
Policyholders are speaking out about their loss. Vanessa Awtry spoke to WSBTV, saying the change came as a shock.
“I was expecting to go to the store on Saturday to pick up stuff. I called to check my balance. ‘Benefits are temporarily suspended,’” Awtry said. “I would get $300 over the counter, $295 for pet supplies, gas and utilities and then $250 extra to help with food costs.”
For Georgia residents on fixed incomes, primarily senior citizens, Sonder’s monthly cash benefits offered more than healthcare—the added assistance in food stability or gas for traveling to and from work. However, many claim the benefits were unsustainable in the long term. Insurance agent James Walker expressed these sentiments after the news. While he appreciates what the company attempted to do, he says the perks likely led to their downfall.
“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.
State authorities are offering a special enrollment period that runs through Oct. 31 to help the affected seniors transition to new insurance plans. Nearly 13,000 have already signed up for new coverage. Those who don’t re-enroll will be automatically shifted into traditional Medicare Advantage plans.
Notable financial advisor Clark Howard urged residents to review their replacement plans closely. Howard suggests that many Medicare Advantage options may offer more robust coverage without the need for add-ons.
RELATED CONTENT: Maryland Councilwoman Helps Pass Law To Get Egg Freezing Covered By Insurance
