Bright Health has closed the sale of its last insurance business to Molina Healthcare.
The deal closed Jan. 1, according to a Jan. 2 news release from Molina.
The aggregate purchase price for the MA unit was $500 million, according to a Jan. 5 regulatory filing from Bright Health. After a net equity estimated adjustment, transaction costs and contingent consideration receivable, Bright received $330 million in cash.
The deal will significantly expand Molina Healthcare's Medicare membership. The company had 173,000 Medicare members at the end of the third quarter of 2023, according to its earnings report. Bright Health has around 109,000 Medicare Advantage members in California, according to Molina's news release.
In a Jan. 2 news release, Bright Health said it made the final payment on its amended credit facility with J.P. Morgan, concurrent with the close of the sale.
"We are pleased to announce the close of this transaction as it meaningfully improves our capital position and allows us to focus on making high-quality healthcare accessible and affordable to all populations," Mike Mikan, president and CEO of Bright Health, said in the news release.
The sale marks the close of Bright Health's insurance business. The company ended all of its individual and Medicare Advantage offerings outside of California in 2022.
The company is pivoting to NeueHealth, its consumer care business. The company served 355,000 consumers in value-based care arrangements in 2023, up from 115,000 in 2022, according to its third quarter earnings report.