Health Insurance Startup Bright Health Announces 2020 Expansion Plans
Health insurance startup Bright Health is heating up yet again. The Minneapolis-based company on Wednesday announced plans to expand into 13 new markets across seven states in 2020.
The company will expand into cities in Florida, Illinois, North Carolina, Ohio, Oklahoma, and South Carolina—the company’s first foray into those states. The expansion will bring Bright Health’s footprint to a total of 22 markets in 12 states. Last year, the company established a presence in Arizona, New York, Ohio and Tennessee.
In a statement, Bright Health CEO Bob Sheehy note that the company has grown from its pilot market in Denver to serving “tens of thousands” of members across six states in just four years.
“This substantial growth shows that consumers are hungry for a new healthcare model that is simple, personal, and more affordable,” said Sheehy. “We've been able to meet this demand because our Health Plan Care Partner Model allows us to scale quickly and effectively.”
In addition to extending its geographical reach, Bright Health will also expand its product offerings in all existing markets.
Bright Health’s signature offering is its Health Plan Care Model. The model involves developing personalized care partner networks that meet several criteria, such as comprehensive care across specialties, geographic reach, and quality of care.
As TCB reported last July, Bright Health chooses just one healthcare provider in each market to create what’s called “narrow networks,” a concept centered on the premise that the tight-knit combination of payer and provider results in lower premiums and better healthcare.
Bright Health’s model has attracted significant investment that has supported its rapid geographic and product portfolio growth. Last November, it completed a $200 million funding round, bringing its total capital acquisition amount to $440 million in equity financing.
“We've had phenomenal success in our first four years,” said Sheehy, “and our 2020 expansion proves that we are able to deliver a much-needed product to an underserved population.”