Bright Health, a Minneapolis-headquartered provider of affordable individual, family and Medicare Advantage healthcare plans in Alabama, Arizona, Colorado, New York City, Ohio and Tennessee, has raised $200 million Series C.
The company was founded by the former chief executive officer of UnitedHealthcare Bob Sheehy; Kyle Rolfing, the former CEO of UnitedHealth-acquired Definity Health; and Tom Valdivia, another former Definity Health executive.
Bright started out targeting the individual health-insurance market, but has since expanded into the Medicare Advantage area. It partners with a sole healthcare provider in each city it serves. Bright started out selling coverage in Colorado and has since expanded into new states including New York, Arizona, Ohio and Tennessee. Bright said in a release that it plans to triple its geographic footprint next year.
The funding values Bright Health at $950 million, according to PitchBook — just $50 million away from unicorn status.
Bright Health plans to use its $200 million infusion to rapidly expand into new markets, planning to triple its geographic footprint in 2019.
“Bright Health has continued to execute at a fast pace towards our goal of disrupting the old health care model that places insurers at odds with providers,” Sheehy said in a statement. “[Its] current high re-enrollment rate shows that consumers are ready for this improved healthcare experience – especially when it is priced competitively.”