Bright Health Group to Lay Off 99 Employees
After Bright Health Group announced plans to end its individual and family health insurance offerings and reduce its Medicare Advantage coverage to only California and Florida, one health care analyst predicted that a lot of people will begin “looking for their next job.”
The prediction is playing out as expected.
A Wednesday WARN notice filed with the Minnesota Department of Employment and Economic Development shows Bright Health Group will eliminate 99 positions at its Bloomington headquarters. In a letter attached to the WARN notice, a Bright Health official wrote that employee separations will occur on January 7 and are expected to be permanent.
In a separate filing with the U.S. Securities and Exchange Commission, Bright Health execs hinted that layoffs would be coming. On Nov. 4, the company’s board approved a plan to “restructure its workforce and reduce expenses” based on the updated business model, according to the filing.
Last month, the Bloomington-based company announced it will exit Alabama, Arizona, Colorado, Florida, Georgia, Nebraska, North Carolina, Texas, and Tennessee in Janurary. This was in addition to Bright Health’s previously announced exit from Illinois, New Mexico, Oklahoma, South Carolina, Utah, and Virginia.
The company will no longer offer individual and family plan products in 2023. Medicare Advantage options will now only be available in California.
The elimination of these products affects staffing at all levels across the organization, a Bright Health spokesperson said in an email. Internal team restructuring includes reductions in personnel across the company’s current offices and markets.
“The individuals impacted by these decisions have contributed significantly to the company and have been great partners to their colleagues,” the spokesperson said. “Bright is thankful for all they have done. Plans are in place to strongly support those leaving the organization as they seek new opportunities in Minnesota and elsewhere.”
The company has said it is now strictly focusing on its largest markets. It will continue to operate clinics in California, Texas, and Florida, which make up 26% of the nation’s aging population.
This change follows a continued shift by the company away from health insurance and toward direct care clinic offerings. CEO Mike Mikan has said in a previous conference call that the change allows the company to reduce its need to raise additional capital, adjust operating expenses to reflect the size of the business, and recapture restricted capital in the future.