Bright Health

From Wikipedia the free encyclopedia

Bright Health Group, Inc.
Company typePublic
NYSE: BHG
IndustryHealth insurance
Founded2016; 8 years ago (2016)
FoundersBob Sheehy, Kyle Rolfing, and Tom Valdivia
HeadquartersMinneapolis, Minnesota, U.S.
Key people
G. Mike Mikan (CEO)
RevenueIncrease $400 million(2019)[1][2]
Number of employees
1500

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

History

[edit]

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.[3] The company said it would focus on "consumer-centric" technology, facilitating patient experiences through digital interfaces.[4] Bright Health is based in Minneapolis.[5] It first began offering plans in Colorado in a partnership with Centura Health[6][7] after several large insurers announced they would be pulling out of the state.[8]

In 2017, Bright Health acquired the marketing firm Spyder Trap,[9] and its founder became Bright Health's Chief Technology Officer.[10] In June 2017, the company raised an additional $160 million in Series B funding.[11] In September 2017, Forbes included Bright Health on a list of 25 "next billion-dollar startups".[12] The company aligned with Mercy Health, the largest hospital system in Ohio, in July 2018[13] and partnered with Mount Sinai in New York to offer Medicare Advantage plans the next month.[14] Bright Health closed a $200 million Series C financing round in November 2018, bringing the total raised to more than $440 million.[15] It next began offering plans in the State of Arizona, before setting plans to sell in Alabama in 2018,[16][17][18] partnering with Arizona Care Network (an insurer owned by Dignity Health and Abrazo Community Health Network) in Phoenix and Brookwood Baptist Health in Birmingham.[19][18]

In 2019, Bright Health joined America's Health Insurance Plans, a trade association for health insurance companies,[20] and expanded into parts of New York, Ohio, and Tennessee.[21] It also raised an additional $635 million for expansion, bringing the total amount of funding to more than $1 billion.[22] G. Mike Mikan, who formerly held leadership roles at UnitedHealth Group and Best Buy, joined as vice chairman and president in September 2019.[23][24] By December 2019, Bright Health was operating in 22 markets in 12 states.[25]

In January 2020, Bright Health appointed former Target executive, Cathy Smith, to be the new CFO, replacing Don Powers.[26] That same month, the company announced it would acquire Brand New Day Health Plan, increasing its reach in the Medicare Advantage market.[27] The acquisition also enabled Bright Health to begin offering services in California.[28] Bright Health became Minnesota's first "unicorn" when it reached a valuation of $1 billion.[1] G. Mike Mikan became the company's CEO in April 2020.[29]

In 2020, the company promoted former Periscope CEO, Liz Ross, to the post of new chief marketing officer.[30] Bright Health raised $500 million in Series E funding in September 2020.[25]

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

[edit]

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] As of April 2021, 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.[19]

References

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