Bright Health Group will end Medicare Advantage operations in Florida, further contracting its insurance business.
The insurtech announced in October it would be exiting the Affordable Care Act exchange business to focus next year solely on its Medicare Advantage operations in Florida and California, and on its NeueHealth provider arm. Now, the company will only operate Medicare Advantage plans in California for 2023, Chief Financial Officer Cathy Smith said during the third-quarter earnings call Wednesday.
“We’ve got a pretty significant change in our cost structure as we exit the ACA insurance business and MA insurance business in all states except California,” Smith said. “We’re well underway with business cost restructuring year-over-year, which will help that cost come down pretty quickly.”
The insurtech took a number of actions during the quarter to stabilize its finances.