Bright Health

Bright Health is a health insurance company.

They aim to provide users with comprehensive coverage, including drug prescriptions, optical treatment and dental health through cost-effective plans. Alongside their insurance plans, users can gain access to a health concierge in the event they need advice or guidance on any health related matters - this can range from booking appointments to self-diagnosis. Their plans also include a feature whereby users are rewarded with monetary benefits for ‘making positive health decisions’.

Since their creation in 2015, Bright Health have acquired digital experts Spyder in July 2017 for an undisclosed amount.

At the end of May 2019, Bright Health posted a final filing showing that they had made a profit of $15.3 million over the period. The company also revealed plans to triple its presence by entering 9 new markets, including the metropolitan areas of Ohio, Tennessee and New York, by the end of the year.

In December 2019 Bright Health announced they had raised $635m in Series D funding; the round was led by NEA. The investment means that Bright Health have now raised more than $1bn in funding since early 2016. The company is currently focused on expanding in Medicare Advantage markets.

Following the outbreak of global pandemic Covid-19, Bright Health began offering free Covid-19 tests and early prescription refills for its policy holders in March 2020.

Bright Health raised $500m in Series E funding in September. The funding will be used to accelerate the Company's growth and diversification of the business and geographies in which it operates.

In April 2021 Bright Health strengthened its position in the telehealth market with its acquisition of Zipnosis. Bright hope the move will lower costs and provide better access to care. The acquisition comes just days after it was revealed Bright Health plans to raise up to $1bn in an IPO, due in Q2.

Less than a year after its $500m Series E round, Bright Health announced in June it was heading for an initial public offering of $60m in shares. In its SEC filing, it revealed over $1.2bn in revenue in 2020, across 99 markets and 14 states.  

During October 2022 the company halted individual coverage in 15 states and reduced Medicare Advantage plans to just two states—California and Florida. The move cuts the company's revenue in half. It also represents a major retreat for the company given it had built a national presence in the last five years. The announcement comes as the company reported huge financial losses due to meeting regulatory requirements and Covid pay-outs.

In May 2023 the company was reported to be urgently looking to sell off its California Medicare Advantage plans to stave off bankruptcy, according to reports and earnings calls. The company, which secured a credit facility extension until the end of June 2023, needed to raise around $300m to avoid shut down. Bright Health posted a loss of $186.9 million in Q1 2023 (down from 204.2m YoY), revenues of $756.3m (up from $613.3m), and 123,000 members in its California plans (up 3,000).

Later in July 2023 the company said the price for its California Medicare Advantage business to Molina Healthcare was $600m. The deal was expected to close in early 2024.