Bright Health is pulling back on certain growth plans as the health insurer announced Thursday plans next year to exit the market where individuals buy coverage in six states.
Nothing changes for subscribers or health care providers during 2022, the Bloomington-based carrier said, but the company's health plans for individuals won't be an option next year in Illinois, New Mexico, Oklahoma, South Carolina, Utah and Virginia.
The individual market business in those states is expected to contribute less than 5% of Bright Health's total revenue this year, the company said in a news release. The exits "will have an immaterial impact on revenue in 2023 and beyond," the company added.
"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," Mike Mikan, the company's president and chief executive, said in a statement.
Bright Health has been a fast-growing health insurer with a meteoric rise funded in part by Minnesota's largest-ever initial public offering of stock. But problems with risk adjustment and claims processing technology have contributed to a series of disappointing earnings releases since last summer.
The company's stock price has plunged, and in recent months two top executives have announced departure plans.
In March, Bright Health said it would eliminate about 150 jobs. Earlier this month, Colorado insurance regulators issued a $1 million fine after investigating more than 100 consumer and health care provider complaints indicating systemic operational problems.
Next year, Bright Health will continue selling individual market coverage in 10 states, the company said Thursday.
In the six states where the company is leaving the individual market, Bright Health says it will help members transition to new insurers during the next open enrollment cycle. They will soon receive discontinuation letters.
"We believe these actions best position us to achieve long-term success for our members and care partners," said Jay Matushak, the interim chief executive of the company's insurance division, in a statement.
