- The board of directors of insuretech Bright Health Group is exploring bids for its California Medicare Advantage plans, Brand New Day and Central Health Plan, which would fully exit the company from the insurance business, Bright announced in its first quarter earnings report on Tuesday.
- The company reported Q1 revenue of $756.3 million, which is up from $648.3 million in the first quarter of 2022.
- Bright Health CEO Mike Mikan said he saw potential for the sale of the MA business to boost its delivery care division. The MA plans remain on track for revenue targets for the year, he said.
Following a sale, Bright intends to focus on its consumer care products, according to Chief Financial Officer Cathy Smith.
“While we cannot make any assurances around the potential outcome of the board review, a sale of the business would allow us to meaningfully strengthen our balance sheet and would provide a solid capital base to support the long-term growth of our value-driven consumer care delivery business,” Smith said during an earnings call on Tuesday.
The Minneapolis-based company, which operates affiliate care networks focused on aging and underserved populations, announced last year that it would exit the ACA exchanges to focus on the MA market, then announced shortly after that it would discontinue its MA plans in Florida after exiting from its MA plans in Arizona, Colorado, Illinois and New York. It then announced late last year that it would discontinue its MA plans outside of California as of January 1.
Bright Health did not take questions during this earnings call.
The company has been slashing its footprint following losses after spending more than $720 million in 2022 to end its commercial business operations.
Late last year, the company was threatened with delisting from the NYSE after its share price dropped to less than $1 a share for over 30 consecutive days. In March, Bright faced a threat to its solvency after it spent $350 million available in its credit facility, violating agreements with its lenders.