Bright Health Group told investors this month it needs to raise more capital over the next year, describing the move as a long-anticipated step for the fast-growing health insurer, the StarTribune reports.
But in regulatory filings this month, Bright Health delivered the same core message with greater urgency, saying there’s “substantial doubt” the company can continue as a going concern without raising more capital.
The Bloomington-based insurer has a history of operating losses including a net loss of $432 million during the first six months of 2022, it said in a report to Florida regulators about second quarter financial results.
The losses, coupled with membership growth, mean the company had to set aside more reserve funds as required by insurance regulators, thereby reducing cash for running the business.
Bright Health Group last December raised $750 million to support growth. The funding included a strategic investment by Cigna Ventures as a new investor in the company. The company’s largest existing shareholder, New Enterprise Associates, also participated as a co-investor. Read more.
