Bright Health Secures $160 Million Series B Funding to Expand Affordable, High-Quality Healthcare Plans

VCBeat (WeChat ID: vcbeat) has learned that Bright Health, a health insurance company based in Minnesota, USA, recently announced the completion of a $160 million Series B financing round. To date, the company’s total funding has reached $240 million.

This round of financing was led by Greenspring Associates, with participation from new investors Greycroft Partners, Redpoint Ventures, and Cross Creek Advisors. Additionally, existing investors New Enterprise Associates (NEA), Bessemer Venture Partners, and Flare Capital Partners also participated in this round.

Bright Health stated that the funds raised will be used to drive business growth and transform the traditional healthcare system through a care partnership model.

Bright Health’s Funding History (Data Source: Crunchbase)

Bright Health is a health insurance company that provides consumers with affordable, efficient, and high-quality healthcare services—including health insurance plans and technology-enabled experiences—by partnering with leading healthcare organizations. The company is engaged in exclusive collaborations with some of the nation’s premier healthcare institutions, such as Centura Health, and health insurers to foster closer relationships between patients and care providers.

CEO Robert J. Sheehy (left), President Kyle Rolfing (center), Chief Medical Officer Tom Valdivia (right)

Bright Health was co-founded by CEO Robert J. Sheehy, President Kyle Rolfing, and Chief Medical Officer Tom Valdivia. The three founders came together to launch the venture because they had previously been colleagues and shared a strong optimism about the health insurance market.

Robert J. Sheehy is the former CEO of UnitedHealthcare, a health insurance provider, where he served for over 20 years and accumulated extensive professional experience. Kyle Rolfing is the former CEO and co-founder of Definity Health and RedBrick Health, both health management companies, and was also a member of UnitedHealthcare’s leadership team. Under Kyle’s leadership, Definity Health’s revenue grew from zero to $100 million in just four years. Dr. Tom Valdivia is the former Chief Health Consumer Officer at Definity Health and the co-founder and CEO of Luminate.

Bob Sheehy, Co-founder and CEO of Bright Health, stated: “Bright Health is committed to providing affordable, higher-quality healthcare services to individuals and their families. Leading healthcare institutions across China are developing new models to transform the local healthcare market. Bright Health collaborates with these healthcare institutions to establish Care Partnerships. These partnerships aim to reduce medical costs, improve clinical outcomes, and enhance satisfaction among both consumers and care providers, with the goal of delivering a completely new healthcare experience for patients.”

He also stated, “We are working to mend the fractured doctor-patient relationship by placing consumers at the center and rethinking technological innovation to streamline the healthcare experience. Launching a new health initiative is no small feat, but we are confident that, with our strong team and robust business model, we can drive meaningful change.”

Bright Health’s 2017 plan was to enter the Colorado market. The company’s health insurance plans would be offered directly to consumers through agents, as well as public and private health insurance exchanges. As for Care Partnership and Medicare Advantage plans, they were scheduled to be implemented in 2018 or later.

Currently, Bright Health has partnered with Centura Health, the largest healthcare network in Colorado. Centura Health connects individuals, families, and communities across Colorado and western Kansas with more than 6,000 physicians and 21,000 behavioral health professionals. Through its 17 hospitals, two senior living communities, wellness centers, physician clinics, home care services, hospice care, and Colorado’s “LifeFlight” air ambulance service, Centura Health delivers optimal healthcare to every community it serves.

Gary Campbell, CEO of Centura Health, stated in an interview, “We are committed to transforming traditional healthcare services to meet consumer needs. Our goal is to enhance consumers’ access to convenient, affordable, and high-quality medical services, thereby achieving optimal health value. Our partnership with Bright Health aligns perfectly with this objective.”

Mohamad Makhzoumi, Partner at NEA and Head of its Healthcare Services/Healthcare IT Practice, who participated in this round of financing, stated, “We are delighted to continue our partnership with Bright Health, aiming to meet the needs of consumers and other healthcare organizations by reshaping the industry. Bright Health boasts a management team with extensive experience in the healthcare sector, as well as a differentiated model with significant potential for sustained growth. This has instilled strong confidence in investors regarding the company’s vision and execution capabilities.”

Stephen Kraus, a partner at Bessemer Venture Partners, stated, “We have been engaged in investment and financing activities in the healthcare sector for over 30 years, but our contributions to the health insurance industry have been limited. After dedicating substantial time to understanding the founders in this space, we believe that the Bright Health team is the most experienced and holds the greatest promise for transforming the health insurance industry.”