Bright Health Explained

Bright Health Group, Inc.
Industry:Health insurance
Type:Public
Key People:G. Mike Mikan (CEO)
Founders:Bob Sheehy, Kyle Rolfing, and Tom Valdivia
Location:Minneapolis, Minnesota, U.S.
Num Employees:1500
Revenue: $400 million(2019)[1]

Bright Health Group, Inc. is an American health insurance company based in Minneapolis, Minnesota.

History

The company was founded by Bob Sheehy, the former CEO of United Healthcare, with partners Kyle Rolfing, Tom Valdivia and seed investor Flare Capital Partners, upon raising $81.5 million in venture capital in 2016.[2] The company said it would focus on "consumer-centric" technology, facilitating patient experiences through digital interfaces.[3] Bright Health is based in Minneapolis.[4] It first began offering plans in Colorado in a partnership with Centura Health[5] [6] after several large insurers announced they would be pulling out of the state.[7]

In 2017, Bright Health acquired the marketing firm Spyder Trap,[8] and its founder became Bright Health's Chief Technology Officer.[9] In June 2017, the company raised an additional $160 million in Series B funding.[10] In September 2017, Forbes included Bright Health on a list of 25 "next billion-dollar startups".[11] The company aligned with Mercy Health, the largest hospital system in Ohio, in July 2018[12] and partnered with Mount Sinai in New York to offer Medicare Advantage plans the next month.[13] Bright Health closed a $200 million Series C financing round in November 2018, bringing the total raised to more than $440 million.[14] It next began offering plans in the State of Arizona, before setting plans to sell in Alabama in 2018,[15] [16] [17] partnering with Arizona Care Network (an insurer owned by Dignity Health and Abrazo Community Health Network) in Phoenix and Brookwood Baptist Health in Birmingham.[18]

In 2019, Bright Health joined America's Health Insurance Plans, a trade association for health insurance companies,[19] and expanded into parts of New York, Ohio, and Tennessee.[20] It also raised an additional $635 million for expansion, bringing the total amount of funding to more than $1 billion.[21] G. Mike Mikan, who formerly held leadership roles at UnitedHealth Group and Best Buy, joined as vice chairman and president in September 2019.[22] [23] By December 2019, Bright Health was operating in 22 markets in 12 states.

In January 2020, Bright Health appointed former Target executive, Cathy Smith, to be the new CFO, replacing Don Powers.[24] That same month, the company announced it would acquire Brand New Day Health Plan, increasing its reach in the Medicare Advantage market.[25] The acquisition also enabled Bright Health to begin offering services in California.[26] Bright Health became Minnesota's first "unicorn" when it reached a valuation of $1 billion.[27] G. Mike Mikan became the company's CEO in April 2020.[28]

In 2020, the company promoted former Periscope CEO, Liz Ross, to the post of new chief marketing officer.[29] Bright Health raised $500 million in Series E funding in September 2020.[30]

In early 2021, Bright Health announced record membership growth, providing coverage to more than 500,000 consumers.[31] The company also announced another acquisition in California, Central Health Plan of California Inc., further growing the Medicare Advantage business.[32] [33]

In April 2022, Bright Health announced it would discontinue offering plans in six states for 2023: Illinois, New Mexico, Oklahoma, South Carolina, Utah and Virginia. These markets were expected to contribute less than 5% of the company's revenue for 2022.[34] In October 2022, Bright Health announced that it would close plans in Alabama, Arizona, Colorado, Florida, Georgia, Nebraska, North Carolina, Texas and Tennessee.[35]

In 2023, Bright Health announced it would sell its Medicare Advantage operations, including Brand New Day and Central Health Plan in California, to Molina Healthcare.[36]

Health insurance

The company began selling health insurance plans in 2017 and Medicare Advantage plans in 2018, in reaction to the Affordable Healthcare Act.[37] Bright Health works with "narrow networks" of specific doctors and hospitals to suppress the cost of healthcare for those enrolled in their program and facilitate coordination of care.[38] [39] The company works in cooperation with major health systems in a market to design a network of services around those providers.[40] Bright Health refers to these providers as "care partners".[41], it operates in more than 50 markets in 13 states and provides virtual and in-person care to more than 220,000 patients.[42] The company also has three technology components: a user interface, a data analytics module, and a platform that works with electronic medical records and telemedicine companies.

Notes and References

  1. Web site: News . Bright Health . 27 April 2021 . en.
  2. Web site: Health Insurance Startup Raising Big Money. Fortune Magazine.
  3. News: Herman . Bob . Former UnitedHealthcare CEO launches venture-backed insurer . 14 April 2021 . Modern Healthcare . 6 April 2016 . en.
  4. Web site: Bright Health. 17 October 2017. Fortune Magazine.
  5. Web site: 1 June 2017. Health insurance startup Bright Health picks up another $160 million. Mobile Health News.
  6. Web site: After raising $80 million Bright Health prepares to sell insurance online. 8 August 2016. Digital Commerce 360.
  7. Web site: Health startup Bright Health picks Colorado as first market. 26 May 2016. The Denver Post.
  8. Web site: Bright Health Acquires Marketing Agency Spyder Trap. TCB Magazine.
  9. Web site: Bright Health buys Minneapolis digital-marketing agency Spyder Trap. Minneapolis/St. Paul Business Journal .
  10. Web site: Bright Health Is Latest to Fundraise Despite Obamacare Uncertainty. Brian. Gormley. 1 June 2017. The Wall Street Journal. www.wsj.com.
  11. News: Adams . Susan . The Next Billion-Dollar Startups 2017 . 14 April 2021 . Forbes . 26 September 2017 . en.
  12. News: Brunsman . Barrett J. . Mercy Health teams with insurer on new plans . 14 April 2021 . Cincinnati Business Courier . 18 July 2018.
  13. News: Beaton . Thomas . Payers, Providers Create New Medicare Advantage Partnerships . 14 April 2021 . HealthPayerIntelligence . 24 August 2018.
  14. News: Mack . Heather . Mack's Take: A New Wave of Health Insurers is Taking Charge—and Market Share . 14 April 2021 . Wall Street Journal . 29 November 2018.
  15. Web site: Bright Health is expanding into Medicare market. The Star Tribune.
  16. Web site: Oscar gets into bed with Humana to scale employer health insurance business (Updated) . MedCity News. medcitynews.com.
  17. Web site: Health insurer plans Alabama expansion, will partner with Brookwood. Birmingham Business Journal.
  18. Web site: In quest to fix broken member experience for insurance, Bright Health raises fresh capital. MedCity News. medcitynews.com.
  19. News: Morse . Susan . AHIP advocacy group questions Medicare Advantage payment changes . 17 April 2021 . Healthcare Finance News . 24 January 2019 . en.
  20. News: Snowbeck . Christopher . Minneapolis-based startup Bright Health adds top executives . 16 April 2021 . Star Tribune . 3 September 2019.
  21. News: Snowbeck . Christopher . Bright Health raises additional $635 million for expansion . 16 April 2021 . Star Tribune . 17 December 2019.
  22. News: Ostuni . Amanda . Former Best Buy Exec Mike Mikan Joins BrightHealth . 16 April 2021 . Twin Cities Business . 6 September 2019.
  23. News: Miller . Carrigan . Bright Health hires former interim Best Buy CEO as president; co-founder Rolfing has left . 17 April 2021 . Minneapolis / St. Paul Business Journal . 3 September 2019.
  24. Web site: Bright Health Picks Former Target Exec to Be CFO. Twin Cities Business. 2020-04-07.
  25. News: Minemyer . Paige . Bright Health to buy California health plan, further growing its MA reach . 17 April 2021 . FierceHealthcare . 8 January 2020 . en.
  26. News: Miller . Carrigan . With purchase of California health plan, Bright Health will cover America's three biggest cities . 17 April 2021 . Minneapolis / St. Paul Business Journal . 8 January 2020.
  27. News: Miller . Carrigan . Bright's Future . 17 April 2021 . Minneapolis / St. Paul Business Journal . 13 February 2020.
  28. News: Gilyard . Burl . Mike Mikan Tapped as New CEO for Bright Health . 12 April 2021 . Twin Cities Business . 24 April 2020.
  29. Web site: Former Periscope CEO Liz Ross Joins Bright Health. 2020-12-12. www.bizjournals.com.
  30. News: Reuter. Elise. 22 September 2020. Bright Health raises $500M, plans expansion into employer-based insurance. MedCity News. 17 April 2021.
  31. News: Vaidya . Anuja . Report: Bright Health eyes $1B IPO . 17 April 2021 . MedCity News . 2 April 2021.
  32. News: Dela Cruz . Katherine . Corporate America Not Likely To Unwind COVID-19 Debt Buildup Despite Credit Hits . 17 April 2021 . S&P Global . 7 January 2021 . en-us.
  33. News: Gilyard . Burl . Bright Health to Buy California-based Central Health Plan Amid Ballooning Growth . 17 April 2021 . Twin Cities Business . 8 January 2021.
  34. Web site: Bright Health exiting six markets after a rough 2021 . 2022-05-17 . Healthcare Finance News . en.
  35. https://www.mobihealthnews.com/news/bright-health-cut-individual-family-insurance-plans-next-year
  36. https://www.healthcarefinancenews.com/news/bright-health-announces-sale-its-remaining-medicare-advantage-plans
  37. Web site: Former UnitedHealth executive to launch new health plan. The Star Tribune.
  38. News: St. Anthony . Neal . Minnesota venture capital take in first half nearly topped last year's entire funding . 12 April 2021 . Star Tribune . 22 July 2017.
  39. News: Snowbeck . Christopher . Minneapolis-based startup Bright Health adds top executives . 12 April 2021 . Star Tribune . 3 September 2019.
  40. News: Carlson . Joe . Minneapolis' Bright Health plans to double markets where it sells health plans . 12 April 2021 . Star Tribune . 24 July 2019.
  41. News: Hackett . Mallory . Bright Health Plan to expand into new markets in 2021 . 12 April 2021 . Healthcare Finance News . 30 June 2020 . en.
  42. News: Landi . Heather . Bright Health snaps up Zipnosis to build out telehealth services . 12 April 2021 . FierceHealthcare . 8 April 2021 . en.

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