Bright Health buying health plan in California

Bright Health is expanding into California by acquiring a health insurance company that sells Medicare Advantage health plans across several counties in the southern portion of the state.

Minneapolis-based Bright Health said Wednesday that it would acquire this year Universal Care, a company that does business as Brand New Day health plan and has headquarters near Los Angeles.

In 2018, Universal Care reported about $250 million in revenue and more than 35,000 enrollees, according to data from the California Department of Managed Care.

"This transaction gives Bright Health Plan a strong presence in California with an established and philosophically aligned partner," said Mike Mikan, president and vice chairman of Bright Health, in a statement.

Financial terms of the acquisition were not immediately available. The deal is expected to close in 2020.

Since being launched in 2015, Bright Health has quickly grown enrollment across a dozen states, backed by more than $1 billion in financing.

This is a developing story. Check back for updates.

Christopher Snowbeck • 612-673-4744 Twitter: @chrissnowbeck

___

(c)2020 the Star Tribune (Minneapolis)

Visit the Star Tribune (Minneapolis) at www.startribune.com

Distributed by Tribune Content Agency, LLC.