Citing a shift to focus on markets that will provide greater growth, Bright Health is backing out of six states in 2023. The Bloomington-based health insurer said nothing will change for subscribers or healthcare providers in 2022, but the company's plans will no longer be available in Illinois, Oklahoma, South Carolina, Utah, Virginia, and New Mexico in 2023.
“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,”Bright Health President and CEO Mike Mikan said in a statement. “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.”
Bright Health says the retreated markets are expected to represent less than 5 percent of the company's 2022 revenue and will have an "immaterial impact" on future years. The company says it plans on continuing to strengthening its presence in its remaining markets.
The move comes after a recent slashing of about 150 jobs, a huge dip in Bright Health's stock price — currently hovering around $1.86 per share after debuting at $18 per share (Minnesota's largest-ever IPO) — continued financial losses, a $1 million fine from Colorado insurance regulators, and the departure of two executives.
Despite the not-so-bright situations, Bright Health forecasts between $6.8 billion and $7.1 billion in 2022 revenue.