Total equity
financing for the startup health insurer now exceeds $1 billion.
Bright
Health announced Tuesday that the startup health insurance company has raised
another $635 million to support expansion efforts and build its technology
platform.
Since
the company was launched in 2015, Minneapolis-based Bright Health has grown in
markets where individuals buy coverage under the federal Affordable Care Act as
well as by selling Medicare Advantage heath plans for seniors.
Three
previous rounds of equity financing since 2016 raised a total of $440 million,
bringing total fundraising thus far to more than $1 billion.
“This
funding will bring us one step closer to creating a value-based health care
system that streamlines the health care experience for the consumer,” said Mike
Mikan, the company’s president and vice chairman, in a statement.
Mikan
joined Bright Health this summer, becoming one of several former executives from
Minnetonka-based UnitedHealth Group to assume leadership positions with the
startup carrier. UnitedHealth Group runs UnitedHealthcare, the nation’s largest
health insurer.
As
of March, Bright Health employed 228 people and provided coverage to more than
60,000 subscribers.
For
2019, Bright Health expanded beyond existing markets for the company in
Alabama, Arizona and Colorado into portions of New York, Ohio and Tennessee.
Expansion plans for next year mean the insurer is now competing in 22 markets in 12 states, including Chicago,
Cleveland and Orlando.
Bright
Health works with regional health care systems in “narrow network”
arrangements, where patients are limited to a subset of doctors and hospitals
for in-network care with the goal of better care coordination.
“By
eliminating the friction that has traditionally existed between payers and providers,
we are creating true alignment to drive down costs and improve health
outcomes,” Mikan said in a statement.
Twitter:
@chrissnowbeck
Christopher Snowbeck covers health insurers, including
Minnetonka-based UnitedHealth Group, and the business of running hospitals and
clinics.
http://www.startribune.com/bright-health-raises-635-million-for-expansion/566270832/
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