Bright Health to Focus on Health Care Delivery
The company has put a Medicare Advantage business with 125,000 California enrollees up for sale.
A health insurer that once hoped to remake health insurance has decided to focus on the health care delivery market in an effort to keep its business going.
Bright Health Group said last week that it hopes to sell its surviving Medicare Advantage plan business, wind down its remaining Affordable Care Act exchange plans and focus on providing care.
Bright Health lost $1.4 billion in 2022 on $2.4 billion in revenue.
The company noted that it expects to file its official 10-K annual report with the U.S. Securities and Exchange Commission within the next two weeks, and that the filing “will include a disclosure around substantial doubt of the company’s ability to continue as a ‘going concern.’”
Bright Health is hoping to find capital to fund its ongoing operations over the next 12 months, the company said.
What It Means
Some clients may get a sudden reminder that some of the financial institutions they do business with are facing hard times.
The Company
Bright Health is a Minneapolis-based company that currently provides health care for about 375,000 people.
Its Medicare Advantage plan business has 125,000 enrollees in California.
The number of ACA plan enrollees was not immediately available.
In March, the company said that it ended 2022 with 1 million ACA exchange plan enrollees, 125,000 Medicare Advantage plan enrollees and 530,000 health care services users.
Like several other new carriers, Bright Health managed to survive uncertainty about the ACA exchange system during the early years of former President Donald Trump’s administration and then saw the ratio of claims to premiums soar as the COVID-19 pandemic hit.
This year, benefits ratios are down, but economic turmoil and rising interest rates have hurt the supply of capital.
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