Health insurer Bright Health said it has
closed on a $635 million round of financing amid a major expansion of health
plan products including Medicare Advantage to several new markets for 2020.
The latest funding round was led by NEA and
included investments from Bessemer Venture Partners, Cross Creek Advisors,
Declaration Partners, Flare Capital Partners, Greenspring Associates, Meritech
Capital, Redpoint Ventures and Town Hall Ventures. This brings to more than $1
billion the amount of money raised by Bright Health since early 2016, the
company said Tuesday.
“Over the past four years, we have seen
exceptional interest in our approach to transforming healthcare, which is
reflected in our investors’ continued capital support, membership growth and
geographic expansion year-over-year,” Bright Health chief executive Bob Sheehy
said.
Earlier this year, Bright
Health joined a parade of established and new health insurers in announcing
plans to sell private Medicare Advantage plans in several new markets, hoping
seniors flock to such coverage following federal rule changes that allow plans
to offer more supplemental benefits.
Bright Health added seven new Medicare
Advantage markets in six states for 2020. They are: the Orlando and Daytona
areas of Florida; Palm Beach, Fla.; Chicago, Illinois; Omaha, Neb.; the
Cleveland and Akron area of Ohio; Greenville, South Carolina and Memphis
Tennessee.
Prior to the recently completed open
enrollment period, Bright Health already sold Medicare Advantage plans in six
metropolitan markets: Birmingham, Ala; Phoenix, Arizona; Denver, Colo.; New
York City: several Ohio cities including Cincinnati and Nashville, Tenn.
The federal government has yet to announce
Medicare Advantage enrollment for 2020, but sources close to the Centers for
Medicare & Medicaid Services say a record number of seniors have signed up
to MA plans for 2020, which bodes well for Bright Health and other insurers.
Bright Health’s expansion into new regions is
the latest expansion for such plans, which contract with the federal government
to provide extra benefits and services to seniors, such as disease management
and nurse help hotlines with some also offering vision, dental care and
wellness programs. And now insurers are rolling out more supplemental benefits
in their Medicare Advantage plans following rule changes implemented.
Bright Health’s new Medicare Advantage
offerings are part of a major expansion of all of its business lines that
include individual coverage under the Affordable Care Act, “family plans,”
Medicare Advantage and supplemental Medicare plans.
In all, Bright Health said in July it will
begin selling its array of plans in 13 new markets across seven states
beginning next year. “This market expansion brings Bright Health Plan’s
footprint to a total of 22 markets in 12 states, building on its sizable growth
last year when it added products in Arizona, New York, Ohio and
Tennessee,” the company said in July.
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