- Bright Health Group on Tuesday announced that it will no longer offer individual or family plan insurance coverage in Florida beginning next year
- While state-by-state enrollment numbers are unavailable, the company has approximates roughly 1 million enrollees nationwide
- The move will attempt to pave way for a more stable growth trajectory while lowering the level of risk taken on by the group
- Bright Health will also suspend its Medicare Advantage services outside of California and Florida in 2023.
Bright Health Group, a rising figure in the health insurance market share, announced on Tuesday that it will no longer offer individual and family plans in Florida.
While it is unknown how many members may be affected statewide, Bright Health announced earlier this year in an earnings report that it estimates around 1 million overall health plan enrollees nationwide.
According to Bright Health, the decision allows the firm to develop a more predictable growth trajectory while incurring the least amount of risk.
“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 Mike Mikan, President and CEO of Bright Health Group. “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.”
Bright Health also announced today that it will suspend its Medicare Advantage services outside of California and Florida in 2023.
According to internal data, focusing on Bright Health’s major markets where it operates its Fully Aligned Care Model in collaboration with aligned external payors and care providers has a faster route to profitability, higher predictability, and is more capital efficient.
The company currently models to be profitable in 2023 and will serve underprivileged people in 26 states through its risk-bearing care delivery business, Medicare Advantage products, and the ACO REACH Program.
The refocused footprint reduces Bright Health’s overall regulated capital need and is expected to release excess regulated capital of approximately $250 million upon a settlement of all medical liabilities and approval from state regulators.
The provider further expects to deliver a $3 billion net revenue balanced business model in 2023 through its risk-bearing care delivery and Medicare Advantage businesses.