Bright Health will exit six markets in a bid to focus its business following a year of losses.
The company announced Thursday that it will no longer offer individual or family plans in Illinois, New Mexico, Oklahoma, South Carolina, Utah or Virginia after 2022. Bright Health said these markets are projected to contribute less than 5% of its total revenue for this year, and will have an "immaterial" impact on revenue in 2023 and beyond.
The insurtech went public in June of last year, raising nearly $1 billion and setting a new high for insurance initial public offerings. The company reported a $1.2 billion loss for 2021 in its full-year earnings.
Bright Health execs said in the announcement that exiting those markets will allow it to focus on expansion in markets where it can drive the greatest impact.
“We are always evaluating where we believe Bright Health Group is best positioned to enhance the health care experience for consumers and Care Partners in order to deliver the highest quality, affordable care,” said Mike Mikan, president and CEO of Bright Health Group. “We’ve demonstrated that the Fully Aligned care model works and are focusing on markets where we can continue refining and optimizing that model to drive better outcomes and support profitable, measured growth.”
Bright Health will focus on growing its Fully Aligned care model in its existing market as well as building out NeueHealth and its care delivery and provider enablement business. The company has pegged NeueHealth as a key driver of growth.
The changes will not impact members or providers in 2022, and Bright Health said it will ensure that all members are transitioned to new plans during the next enrollment period. Members in plans that are impacted by this change will receive notification letters in the near future.
“We believe these actions best position us to achieve long-term success for our members and Care Partners. Bright HealthCare will continue to focus on operational excellence and will work tirelessly to advance our model, aligning the financing and delivery of care to provide the best value and outcomes,” said Jay Matushak, interim CEO of Bright HealthCare.