A 3-year-old medical insurance firm is drastically increasing its presence in 2020, as startups flush with venture-capital money look to reinvent the best way healthcare is completed within the US.
Minneapolis-based Bright Health, which offers well being plans for people beneath the Affordable Care Act and to seniors in Medicare Advantage, will function in components of 12 states in 2020, roughly double its geographic footprint for 2019, the corporate stated on Wednesday.
That’ll embody particular cities and counties in Florida, Illinois, North Carolina, Oklahoma, and South Carolina, and the entire state of Nebraska. It builds on Bright’s presence in Alabama, Arizona, Colorado, Tennessee, Ohio, and New York.
Other venture-backed well being insurers are additionally planning to develop. Earlier this month, New York-based startup Oscar Health stated it plans to supply Medicare Advantage well being plans in New York City and Houston in 2020. Oscar has additionally filed to be an insurer in at the least three new states, although it hasn’t but introduced its particular person plan markets for 2020. Devoted Health, a Medicare Advantage insurer that began working plans in Florida in 2019, has filed to be an insurer in Texas as nicely.
Read extra: We obtained a take a look at the slide deck that buzzy startup Devoted Health used to hit a $1.eight billion valuation earlier than it signed up any prospects
Business Insider beforehand reported on Bright Health’s plans to develop into new states, primarily based on regulatory filings and job postings.
Bright usually companions with one well being system in every market to assist arrange its insurance coverage plan. For occasion, in New York, it is working with Mount Sinai Health System, and in Colorado, it partnered with Centura Health.
The concept is that by working straight with one well being system in a area moderately than contracting extra broadly, Bright could make its members’ care higher and cheaper.
Here’s a take a look at the place Bright could have a presence in 2020, both through the person market, the Medicare Advantage market, or each. The firm declined to say which well being methods it plans to accomplice with in its new cities and states.
Founded in 2016, the corporate has raised $441.7 million and has a valuation of $950 million, based on PitchBook.
Bright CEO Bob Sheehy advised Business Insider that he attributes this to the markets’ curiosity within the mannequin, and that he anticipates a “strong growth pipeline” for 2021 and 2022. If something, he stated, he needs he’d expanded extra throughout the nation earlier.
“There’s a real need in the market place to come up with better solutions to serve consumers,” Sheehy stated.
In the primary quarter of 2019, Bright Health generated $66 million in income and recorded $39.6 million of medical claims. The firm posted a revenue of $15.three million for the interval.
Sheehy stated earlier this 12 months that the corporate anticipates premium income to leap to about $400 million in 2019. As of the top of the primary quarter, Bright had 65,886 members, nearly all of which have been within the firm’s particular person and household plans.
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