Health insurance startup Bright Health has secured $80 million in Series A funding led by Bessemer Venture Partners and New Enterprise Associates (NEA), with participation by Flare Capital Partners and others. The company will use the funds to support its nationwide rollout to the individual health insurance marketplace.
Bright Health offers affordable health plans, a simpler, more integrated technology experience, and provides health systems compelling economic rewards for practicing efficient, high-quality healthcare. It starts by developing a single, exclusive partnership in each market with a leading health system. This partnership enables Bright Health to support stronger relationships between consumers and care providers.
"There's a better way to better health," Bob Sheehy, co-founder and CEO of Bright Health, said in a statement. "We are realigning the broken payer-provider relationship, focusing on the consumer and reimagining how technology can simplify the healthcare experience from beginning-to-end. Making that happen and starting a new health plan is no small feat, but we're confident we have the right team and model to create real and necessary change."
Bright Health, however, has yet to enter its first market; it plans to do that and enroll members for the 2017 plan year. The company's individual health insurance plans will be offered directly to consumers, via broker partners, and through public and private health insurance exchanges. Additional market expansion, care provider partnerships and Medicare Advantage Plans are planned for 2018 and beyond.
The company's leadership team includes such healthcare industry veterans as Bob Sheehy, former CEO of UnitedHealthcare; Kyle Rolfing, co-founder and former CEO of Definity Health and RedBrick Health; and Tom Valdivia, MD, MS, former chief health consumer officer of Definity Health, serial entrepreneur and health informaticist. Rolfing is the company's president, and Valdivia is its chief medical officer.
"We have invested in healthcare for more than 30 years and never before has the health insurance sector been so ripe for disruption," Stephen Kraus, partner at Bessemer Venture Partners and leader of the firm's healthcare investment activities, said in a statement. "After spending lots of time looking at new entrants, we are convinced the Bright Health team is the most experienced and has the best vision for leading this change."
Bright Health will provide more information about its first market, first care provider partner, technology experience and benefit plans in the near future.