Insurtech company Bright Health announced today another bout of funding, this time racking up $500 million for its Series E round.
The funding round included new investors Tiger Global Management, T. Rowe Price Associates and Blackstone, as well as existing investors including NEA, Bessemer Venture Partners and Greenspring Associates.
WHAT IT DOES?
Bright Health got its start as a consumer-focused health insurance and technology company. By partnering with a single health system within a market, the company says patients get better access to affordable care while providers receive the tools to optimize their practice.
It operates in 43 markets across 13 states in the U.S. and currently offers individual, family and Medicare Advantage plans. Additionally, the tech-enabled company runs a consumer-minded platform consisting of web tools and a mobile app.
“At Bright Health we are leveraging our person-centric, intelligent technology platform to build a diversified and digitally integrated health care company,” said Mike Mikan, Bright Health’s CEO, in a statement.
“By aligning with our Care Partners, we have created a more personalized, affordable and convenient end-to-end health care experience for consumers. This funding allows us to continue to scale our transformative model and fulfill our purpose of lowering health care costs while improving outcomes, experience and access.”
WHAT IT’S FOR
These funds, in addition to existing capital, will be used to help the company expand into new geographies, Bright Health said.
With the closing of this round, Bright Health has now raised more than $1.5 billion since 2016.
Earlier this summer, the company announced plans to expand into new markets in 2021 and to add small business plans in certain areas. Its Medicare Advantage and individual and family plans are set to grow into six new markets within Florida, North Carolina and Illinois. Small businesses will be able to purchase plans through Bright Health in Denver, Nashville, Memphis and Nebraska, as well.
Insurtech companies have taken advantage of the public’s desire for lower healthcare costs.
Others in the space include Clover Health, which had its own $500 million funding round in 2019, Oscar Health, which scored $225 million this summer, and Moscow-based BestDoctor, which secured $4.5 million this year.