Bright Health announced April 14 it would cease operations in six states after 2022, but the departure marks just one part of a tough year so far for the Minneapolis-based insurtech company.
Five headlines in 2022:
Bright Health to exit 6 states
The payer will no longer offer individual and group health plans after this year in Illinois, New Mexico, Oklahoma, South Carolina, Utah and Virginia. The six states are forecasted to contribute less than 5 percent of the company's 2022 revenues.
Colorado fines Bright Health $1M
The Colorado Division of Insurance fined Bright Health $1 million April 8, citing over 100 consumer and provider complaints since 2021 that indicated "systemic operational problems." Those problems include failure to pay provider claims according to Colorado law, failure to communicate with members, an inability to accurately process consumer payments and accounts, and untimely process of claims for physical and behavioral health problems.
Former Bright Health CEO Simeon Schindelman stepped down from the top role on March 11. The company's CFO, Jay Matushak, is leading the company as interim CEO.
Bright Health lays off 5% of workforce
Bright Health Group laid off 150 employees, totaling 5 percent of its workforce, in early March. The parent company did not say which of its 10 offices would be affected.
Bright Health posts losses exceeding $1B in 2021
On March 2, Bright Health Group posted a net loss of $1.2 billion on revenues of $4 billion in 2021. This compares to 2020, when it posted a net loss of $248.4 million on revenues of $1.2 billion.