Bright Health exits individual and family plan markets

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The health insurer will also no longer offer Medicare Advantage plans outside of California and Florida.

Bright Health Group is winding down operations in 2023 by reducing individual and family plan offerings, as well as removing Medicare Advantage products outside of two states.

The announced payer its decision to scrap the Affordable Care Act plans while claiming it has raised $175 million which is expected to close in the coming weeks and “drive the business into profitability”.

Bright Health will focus on its fully aligned model of care, which the company says is “a faster path to profitability, has greater predictability and is more capital efficient.”

The change allows the health insurer to achieve profitability based on adjusted EBITDA in 2023, with $3 billion in net revenue expected next year, according to the health insurer. The $3 billion is down significantly from the company’s expected $6.8 billion in 2022 revenue. second quarter earnings reportwhich also posted a net loss of nearly $432 million in the first half.

“We demonstrated the power of the fully aligned care model to serve aging and underserved populations and advanced the market toward realizing the promise of value-based care across all populations,” said Mike Mikan, President and CEO of Bright Health Group, in a statement. . “The changes announced today give Bright Health a strong and stable platform for profitable growth at much lower risk. This is one more strategic step in building a differentiated and profitable business at scale.

As of June 30, Bright Health had 970,000 commercial members, 120,000 Medicare Advantage members and 500,000 NeueHealth patients.

With this recent announcement, as well as previously announced market exitsBright Health will not offer individual and family plans in Alabama, Arizona, Colorado, Florida, Georgia, Nebraska, North Carolina, Texas, and Tennessee after 2022. Nor will it offer Medicare Advantage plans outside of California. and Florida.

Bright Health said it will continue to meet member needs for the remainder of the year and will work with affected members in transitioning to new plans during upcoming annual and open enrollment periods.

Jay Asser is associate editor for HealthLeaders.

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