[ad_1]
Bright Health Group will no longer offer individual and family plans in Illinois, New Mexico, Oklahoma, South Carolina, Utah or Virginia after 2022, a move to stabilize its finances following a rough year.
The insurtech earlier this year outlined plans to curtail its growth and exit expensive markets as a result of the pandemic driving up medical costs for members gained through the special enrollment period.
“Delivering on our commitment to provide a truly aligned model of care requires that we continually evaluate market changes and evolve to make the greatest impact both today and for the long term,” Bright Health said in a statement. “Nothing will change for members or providers in 2022 and we will work to ensure all impacted members are transitioned to new plans during the next open enrollment cycle.”
According to Bright Health, the six markets are expected to comprise less than 5% of the company’s total revenue for 2022 and their removal will have little impact on earnings.
In 2021, Bright Health lost $1.17 billion, and analysts project it will lose another $1.4 billion this year.
The company’s insurance arm laid off around 5% of its employees in March and said it will stop paying commissions to brokers enrolling additional people in coverage, similar to steps taken recently by payers like Oscar and Molina Healthcare.
Bright Health also plans to close its segment offering group insurance plans to employers.
Recently, Bright Health was fined $1 million by the Colorado Division of Insurance as a result of complaints about the health system failing to pay provider claims, communicate with members, accurately process consumer payments and accounts, and process physical and behavioral health coverage claims in a timely manner.
The company agreed to work with the division and address its issues with consumers and healthcare providers.
Bright Health said it will focus on growing in 10 states where it will continue to offer individual and family plans, drive value and better outcomes and optimize its care model, said Mike Mikan, president and CEO of Bright Health Group, in a news release.
NeueHealth, a care delivery network of more than 200,000 providers working alongside Bright HealthCare, is expected to be a main source of Bright Health Group’s future growth.
[ad_2]
Source link