Bright Health Group posted a $462.8 million operating loss in the third quarter as it continues to wind down its Affordable Care Act (ACA) business and navigates the sale of its Medicare Advantage (MA) arm.
Mike Mikan, CEO of the embattled insurtech, told investors on the company's earnings call Tuesday that as it finalizes its exit from key payer markets, Bright's care delivery arms are progressing.
Its accountable care organizations, for example, generated $30.3 million in gross savings for 2022, for a rate of 4.4% compared to benchmarks. Bright's new "health pineapple" ACO posted a gross savings rate of 11%, making it one of the top performing programs last year.
Overall, Bright expects to have between 335,000 and 355,000 people in value-based care models by the end of the year, including 60,000 in its ACO REACH programs.
"Our consumer care business is unique in the marketplace in serving consumers across all of these different life stages and health insurance coverage categories," Mikan said.
The company also posted $269.4 million in revenue for the third quarter, up 3% compared to the prior-year quarter. Total revenues through the first six months of the year $867.9 million.
Operating loss across three quarters was $531.1 million, according to the earnings report.
Bright executives did not take questions on the earnings call as the sale of its MA plans remains pending. The company expects to close the deal in the first quarter of 2024, pending regulatory approvals.
While Bright expects to reach positive earnings before interest, taxes, depreciation and amortization in 2024, it's still in the hole for some of its ACA risk adjustment payments due for the 2022 plan year. Between its debts and Friday Health Plans' insolvency, insurers are out more than $1 billion.
Bright Health has paid the Centers for Medicare & Medicaid Services for about 80% of its owed risk adjustment payments and has entered into a repayment plan in Colorado, Florida, Illinois and Texas to cover the remaining $380 million.
Alongside the earnings, Nebraska regulators revealed that Bright Health agreed to a $1 million fine for claims processing errors. The state investigated Bright's conduct and found more than 21,000 potential violations, according to a investigative report (PDF) issued Friday.