Bright Health Group is pulling individual Obamacare and family health insurance plans from nine states, which will force hundreds of thousands of Americans to choose new healthcare coverage for next year.
Thehealth insurance company Tuesday”> health insurance company Tuesday said it will “no longer offer Individual and Family Plan products through Bright HealthCare in 2023, or Medicare Advantage products outside of California and Florida.” The announcement came on a day Bright Health said raised $175 million “that is expected to close in the coming weeks and take the business through profitability.”
It’s unclear exactly how many enrollees will be impacted by the decision and faced with choosing new health plans for 2023. Bright Health, which became a publicly traded company just last year, had about 1 million total health plan enrollees projected for 2022, the company has said.
Bright Health couldn’t be reached this morning for comment on how many health plan subscribers would be impacted, but the move impacts customers in at least nine states, according to its press release on the exits.
“With this announcement, in addition to the previously announced market exits, Bright HealthCare will not offer Individual and Family health plans in Alabama, Arizona, Colorado, Florida, Georgia, Nebraska, North Carolina, Texas, and Tennessee after 2022,” the company said.
By scaling back to its largest healthcare markets, Bright Health said the company will be “profitable on an Adjusted EBITDA basis in 2023 and will serve underserved populations through its risk-bearing care delivery business, Medicare Advantage products, and the ACO REACH Program in states that covers 26% of the aging US population.”
“We have demonstrated the power of the Fully Aligned Care Model in serving aging and underserved populations and progressed the marketplace towards seeing the promise in value-based care across all populations,” said Bright Health Group president and chief executive Mike Mikan. “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 to building a differentiated and profitable business at scale.”
The retreat from nine states comes just ahead of the Obamacare open enrollment period, which begins November 1 on the public exchanges under the Affordable Care Act.
“Bright HealthCare will continue to meet its obligations and service impacted members for the remainder of plan year 2022 and will work to support all impacted members in the move to new plans during the upcoming annual and open enrollment periods so that they do not experience any interruptions in their coverage,” the company said. “Members enrolled in impacted plans will receive discontinuation letters, in the near future.”
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