Bright Health further slims MA footprint as it charts course for profitability

Bright Health Group will only offer Medicare Advantage (MA) plans in California for 2023, further slimming its footprint as it focuses on its multiplayer care model and NeueHealth businesses, executives said this week.

Last month, the insurtech said it would cut all of its plans on the Affordable Care Act's (ACA's) exchanges and cut its MA reach down to California and Florida. Now, it's also cutting the Sunshine State from its MA reach.

Chief Financial Officer Cathy Smith said on the company's third-quarter earnings call that while Bright is focusing on California, it expects enrollment to top 125,000.

"Early annual enrollment period results are ahead of expectations," Smith said.

Smith said the significant reduction in its health plan footprint is allowing the company to make major changes to its cost structure, a process that is "well underway" and should help drive down costs "pretty quickly."

CEO Mike Mikan said the company has been working with regulators to pay out claims remaining for this year in its ACA exchange and MA plans. He said by the end of the first quarter, Bright Health will be about 90% complete on these payouts.

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.