Startup insurer Bright Health announced plans to acquire California-based Brand New Day Health Plan, further growing its footprint in the Medicare Advantage market.
Financial terms of the deal were not disclosed, but Bright Health expects it to close in 2020 pending regulatory approvals.
The acquisition will allow for a fusion of Bright Health's tech-enabled and personalized approach with Brand New Day's regional knowledge and clinical programs, executives for the companies said.
Brand New Day's "integrated approach to serving vulnerable populations with complex conditions aligns closely with our Health Plan Care Partner model," said Mike Mikan, president and vice chairman of Bright Health, in a statement. "By combining our core strengths, we will be able to deliver an even better experience for our members across the country."
Brand New Day's current leadership will join Bright Health's leadership team, according to the announcement, and will still spearhead local operations, wit the goal of preserving continuity for members.
"This transaction gives Bright Health Plan a strong presence in California with an established and philosophically aligned partner," Mikan said. "But beyond that, it positions us to leverage this partnership to bring key elements of Brand New Day's patient-first, integrated clinical model of care to all our members across product lines and geographies."
Bright Health has worked to expand its reach of late, including entering several new Medicare Advantage markets for 2020. It closed a $635 million funding round in December, bringing its total raised to more than $1 billion since 2016.