Bright Health Raises Another $500M
Minneapolis-based Bright Health remains a money magnet like no other in Minnesota. On Tuesday morning the company announced raising another $500 million in financing through its Series E funding round.
Bright Health has now raised more than $1.5 billion in financing since early 2016. The new funds will be used “to accelerate the company’s growth and diversification of the business and geographies in which it operates,” Bright Health officials said in a news release.
The company currently operates in 43 markets and 13 states across the U.S. Minnesota, however, is not one of those states. For decades Minnesota law barred for-profits from operating HMOs in the state. A law change in 2017 opened the door to for-profit health plans, but the states’ health insurance market remains dominated by large nonprofits.
The company tapped Mike Mikan as its new CEO in April. Co-founder Bob Sheehy stepped down from the CEO post and is now executive chairman of the company’s board of directors.
“At Bright Health we are leveraging our person-centric, intelligent technology platform to build a diversified and digitally integrated health care company,” said Mikan in a statement. “By aligning with our care partners, we have created a more personalized, affordable and convenient end-to-end healthcare experience for consumers. This funding allows us to continue to scale our transformative model and fulfill our purpose of lowering health care costs while improving outcomes, experience and access.”
The latest financing round includes significant first-time investments from New York-based Tiger Global Management, Baltimore-based T. Rowe Price Associates and New York-based Blackstone.
The company is on pace to top $1 billion in revenue this year.
When Twin Cities Business took an in-depth look at Bright Health in 2018, the company had raised a mere $240 million.
At the time, Sheehy told TCB: “Health care is a $3.3 trillion industry—and nobody’s really happy with it. The long-term issues that we have in health care are basically caused by the status quo.”