Minneapolis-based health insurance company raises another $500M, bringing total to $1.5B

Minneapolis-based Bright Health has raised $500 million in another round of venture capital fundraising that will help expand its geographic reach and add additional services, it said on Tuesday.

The consumer-focused health care and technology company picked up new investors in the latest round and has now raised more than $1.5 billion from venture capital firms since 2016.

The insurer had 60,000 customers at the end of September 2019. It said in January that it would grow to at least 200,000 members this year.

New York-based investment firms Tiger Global Management, Blackstone and Baltimore, Md-based T. Rowe Price are new participants in Bright Health’s latest fundraising. Prior investors NEA, Bessemer Venture Partners and Greenspring Associates also participated in the latest round.

“NEA has backed Bright Health from the very beginning, and we are privileged to continue helping the team transform how health care is delivered and paid for in this country,” said Mohamad Makhzoumi, general partner and head of health care Investing at NEA, in a news release.

Its been a busy year for Bright Health with a big acquisition and expansion plans to new markets.

“At Bright Health we are leveraging our person-centric, intelligent technology platform to build a diversified and digitally integrated health care company,” said Bright Health CEO G. Mike Mikan in a release.

On May 1, the company completed the acquisition of California-based health plan company Universal Care Inc. (dba Brand New Day) and on June 30 announced it would expand to six new markets in Florida, North Carolina and Illinois in 2021.

Mikan also was promoted to CEO. Mikan had served as CEO of venture capital firm Shot-Rock Capital LLC, former interim CEO at Best Buy and was an executive at UnitedHealth Group prior to joining Bright Health. Company founder Bob Sheehy and other former UnitedHealth executives formed Bright Health, originally as a provider in the individual market, which serves self-employed individuals under 65 or those who don’t get insurance through employers.

The company also named three new directors this year Kedrick Adkins, Naomi Allen and former General Electric chairman and CEO Jeff Immelt.

Bright Health was founded in 2015 and currently operates in 43 markets and 13 states offering health plans for individuals and families and Medicare Advantage plans for seniors. Its annual revenue is more than $1.2 billion and it provides health benefits to over 200,000 members and helps to deliver virtual and direct clinical care services to over 120,000 patients.

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