Bright Health raises $160M for expansion

June 01--Minneapolis-based Bright Health said Thursday it has raised $160 million to fund expansion plans that include selling coverage to seniors who get their Medicare benefits through private insurers.

Former UnitedHealthcare chief executive Bob Sheehy launched Bright Health in 2016, and the insurer currently is providing coverage to individuals who buy coverage through the health insurance exchange for Colorado.

Bright Health tries to hold down costs while improving patient outcomes by working closely with health systems in "narrow network" arrangements that steer subscribers to certain doctors and hospitals in hopes of better care coordination.

"Leading health systems across the country are developing new models to transform the health care market in local communities," Sheehy said in a statement. "Bright Health collaborates with these systems to create a proprietary Care Partnership."

For 2018 and beyond, Bright health plans for business via additional markets, partnerships and "Medicare Advantage" health plans, the company said. The fundraising round was led by Greenspring Associates and joined by new investors Greycroft Partners, Redpoint Ventures and Cross Creek Advisors. It also included existing lead investor New Enterprise Associates, as well as Bessemer Venture Partners and Flare Capital Partners.

The individual market serves self-employed people and those who don't get coverage from their employer. The federal Affordable Care Act has brought big changes to the individual market via federal tax credits plus government-run health insurance exchanges where consumers can buy policies.

Twitter: @chrissnowbeck

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