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Bright Health Group Continues to Drive Focus on Consumer Retail Markets with Fully Aligned Model
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Very Positive)
Tags
Rhea-AI Summary
Bright Health Group (NYSE: BHG) announced it will cease offering Individual and Family Plan products in six states for the 2023 Plan Year, namely Illinois, New Mexico, Oklahoma, South Carolina, Utah, and Virginia. This decision aims to focus on markets contributing significantly to revenue, as these states are projected to comprise less than 5% of total revenue. The company will enhance its Fully Aligned care model in remaining states, strengthen NeueHealth services, and ensure a smooth transition for affected members without disruption in coverage.
Positive
Focus on markets with higher revenue potential.
Continued emphasis on operational excellence and enhancing the Fully Aligned care model.
Smooth transition plan for affected members ensures no coverage interruption.
Negative
Losing presence in six states may alienate some consumers.
Projected contribution of less than 5% of total revenue from the discontinued states indicates limited growth in these markets.
For the 2023 Plan Year, Bright HealthCare will no longer offer Individual and Family Plan products in Illinois, New Mexico, Oklahoma, South Carolina, Utah, and Virginia.
MINNEAPOLIS--(BUSINESS WIRE)--
Bright Health Group, Inc. ("Bright Health") (NYSE: BHG), the first technology-enabled, Fully Aligned system of care built for healthcare's consumer retail market, today announced its decision to focus Bright HealthCare’s geographic footprint by no longer offering Individual and Family Plans in Illinois, New Mexico, Oklahoma, South Carolina, Utah, and Virginia after 2022. These markets are forecasted to contribute less than 5% of total Bright Health Group revenue for 2022 and will have an immaterial impact on revenue in 2023 and beyond.
The strategic decision reflects the company’s increasing focus on growing in markets where it can deliver the greatest impact, drive differentiated value through its Fully Aligned care model and achieve operational excellence.
“We are always evaluating where we believe Bright Health Group is best positioned to enhance the health care experience for consumers and Care Partners in order to deliver the highest quality, affordable care,” said Mike Mikan, President and CEO, Bright Health Group. “We’ve demonstrated that the Fully Aligned care model works and are focusing on markets where we can continue refining and optimizing that model to drive better outcomes and support profitable, measured growth.”
Nothing will change for members or providers in 2022, and Bright HealthCare will work to ensure all impacted members are transitioned to new plans during the next open enrollment cycle so that they do not experience any interruption in their coverage. Members enrolled in impacted plans will receive discontinuation letters in the near future.
“We believe these actions best position us to achieve long-term success for our members and Care Partners. Bright HealthCare will continue to focus on operational excellence and will work tirelessly to advance our model, aligning the financing and delivery of care to provide the best value and outcomes,” said Jay Matushak, Interim CEO of Bright HealthCare.
Bright Health Group will focus on growing its Fully Aligned care model for 2023 by deepening Bright HealthCare’s presence in its 10 remaining Individual and Family Plan states, continuing to build the NeueHealth care delivery and provider enablement business, and expanding NeueHealth’s external payor relationships. NeueHealth represents a core driver of Bright Health Group’s future growth.
About Bright Health Group
Bright Health Group is the first technology-enabled, Fully Aligned system of care built for healthcare's consumer retail market. Our differentiated approach aligns care delivery with the financing of care to drive better outcomes, lower costs, and enhance the consumer experience. We have two market-facing businesses: NeueHealth and Bright HealthCare. NeueHealth provides care delivery and value-based enablement services to over 400,000 value-based patients through our owned and affiliated clinics. Bright HealthCare offers Commercial and Medicare health plan products to over one million consumers across the nation. We believe everyone should have access to personal, affordable, and high-quality healthcare. Our mission is to Make healthcare right. Together. For more information, visit www.brighthealthgroup.com.
Forward-Looking Statements
Statements made in this release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These statements often include words such as “will,” “target,” “anticipate,” “expect,” “plan,” “believe,” “intend,” “project,” “forecast,” “estimates,” “projections,” “2022,” “2023,” and other similar expressions. These forward-looking statements include any statements regarding our plans and expectations with respect to Bright Health Group, Inc. and its businesses and segments. Such forward-looking statements are subject to various risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Factors that might materially affect such forward-looking statements include: a lack of acceptance or slow adoption of our business model; our ability to retain existing consumers and expand consumer enrollment; our ability to accurately assess, code and report risk adjustment factor scores for consumers in our Individual and Family and Medicare Advantage Plans; our ability to contract with care providers and arrange for the provision of quality care; our ability to accurately estimate our medical expenses, effectively manage our costs and claims liabilities or appropriately price our products and charge premiums; the impact of the COVID-19 pandemic on our business and results of operations; the risks associated with our reliance on third-party providers to operate our business; the impact of modifications or changes to the U.S. health insurance markets; our ability to manage the growth of our business; our ability to operate, update or implement our technology platform and other information technology systems; our ability to retain key executives; our ability to successfully pursue acquisitions and integrate acquired businesses; the occurrence of severe weather events, catastrophic health events, natural or man-made disasters, and social and political conditions or civil unrest; our ability to prevent and contain data security incidents and the impact of data security incidents on our members, patients, employees and financial results; our ability to comply with requirements to maintain effective internal controls; and the other factors set forth under the heading “Risk Factors” in Bright Health Group’s Annual Report on Form 10-K filed on March 18, 2022, and our other filings with the U.S. Securities and Exchange Commission. All forward looking statements contained in this release reflect management’s beliefs as of the date hereof, and except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or changes in our expectations.
What states will Bright Health Group stop offering insurance in 2023?
Bright Health Group will cease offering Individual and Family Plan products in Illinois, New Mexico, Oklahoma, South Carolina, Utah, and Virginia for the 2023 Plan Year.
What is the impact of Bright Health Group's decision on its revenue?
The discontinued states are expected to contribute less than 5% of Bright Health Group's total revenue for 2022 and have an immaterial impact on revenue in 2023 and beyond.
What is Bright Health Group's strategy moving forward?
Bright Health Group is focusing on deepening its presence in its 10 remaining states, optimizing its Fully Aligned care model, and expanding its NeueHealth business.
How will affected members be supported during the transition?
Bright Health Group will ensure a smooth transition for affected members, offering new plans during the next open enrollment cycle to prevent coverage interruptions.
