The company sells its plan on the individual market in Colorado, including via the state exchange created through the Affordable Care Act.
Its Minneapolis-based team is usually also planning to expand into additional states in addition to into the burgeoning market for Medicare Advantage within the coming months.
Sheehy told CNBC he saw an opportunity to sell individual health insurance under Obamacare, as his former company pulled out of multiple states, reportedly to stem losses. In Colorado, both UnitedHealth Group in addition to Humana announced plans to stop selling individual plans in 2016.
“I commenced the company having a vision to catalyze the individual marketplace,” he said. “My vision was to improve health affordability, in addition to the health care experience.”
Bright’s secret sauce involves working in tight partnership with one particular health system within a region, in of which case Centura Health, which gives of which better window into physician cost in addition to quality.
Bright is usually just one of a handful of venture-backed health insurance plans of which have emerged within the past decade. Its counterparts Oscar Health (individual market), Clover Health (Medicare Advantage), in addition to Devoted Health (Medicare Advantage) have collectively raised more than $1.6 billion in capital.
In contrast to Bright’s medical loss ratio, Oscar Health’s was more than 94 percent in 2014, its first year (although of which’s worth noting of which of which was a very different time for insurers selling on the individual market).
although some health experts say of which of which’s not yet time for Bright Health to pop the proverbial champagne, at least not yet.
“of which’s a better result than most start-up insurance plans, although not yet something to celebrate until of which can reach efficiency with scale,” said Ari Gottlieb, a strategy consultant focusing on health insurance with A2 Strategy Group.