Bright Health Group, Inc. announced Tuesday that it will no longer offer health plans to individuals or families in Colorado as of January 2023, according to a press release.
The Minnesota-based insurer (NYSE: BHG) will also stop providing plans for Alabama, Arizona, Florida, Georgia, Nebraska, North Carolina, Texas and Tennessee.
The move could leave hundreds of Coloradoans without cover, particularly in rural parts of the state.
Bright Health’s website still states, “Bright Healthcare is bigger and better than ever in 2022 and includes Centura Health providers, the Colorado Health Neighborhoods provider network and Children’s Hospital Colorado.”
Affected Front Range areas include: Adams, Arapahoe, Boulder, Broomfield, El Paso, Elbert, Jefferson and Lincoln counties.
Other affected areas include Lake, Grand, Summit, Delores, La Plata, Montezuma and San Juan counties, according to Bright Health’s website.
Members who are currently insured with Bright Health should apply prior to the enrollment open period, which runs from January 1st to 31st.
The insurance provider will continue operations in California and Florida for individual and family plans only, but will no longer offer Medicare Advantage plans.
The decision to stop providing insurance plans to these states was a financial decision, according to company officials. Bright Health is following its “Fully Aligned Care Model” which, according to the press release, “will create a faster path to profitability, has greater predictability and is more capital efficient.”
According to reports in April, Bright Health was ordered to pay Colorado planholders at least $500,000 to resolve more than 100 complaints that began in 2021. These complaints stemmed from the insurance company not paying for the care its customers received. According to the Colorado Division of Insurance, there were at least 850 claims in 2021 that Bright Health did not pay to providers.
Bright Health members will have to choose another form of insurance for 2023, according to a news release from the Colorado Division of Insurance Tuesday.
Individuals with individual health plans—that is, individuals not covered by an employer—can use Connect for Health Colorado to make a decision about a new plan. Colorado Option plans will be available from Connect that provide essential health benefits required under the Affordable Care Act.