Venture-Backed Bright Health to Acquire Brand New Day Health Plan

The health insurance startup is eyeing a larger play in the Medicare Advantage market with the purchase of the California insurer.

Bright Health, a Minneapolis-based health plan, announced plans Wednesday to acquire Brand New Day Health Plan (BNDHP), a Westminster, California–based insurer.

The venture-backed health insurance startup is eyeing a larger play in the Medicare Advantage market with the purchase of the California health plan.

BNDHP currently services Medicare-eligible populations across 12 counties in California. The acquisition will extend Bright's reach into 34 markets, covering around 200,000 members nationwide.

"This transaction gives Bright Health Plan a strong presence in California with an established and philosophically aligned partner," Mike Mikan, president of Bright, said in a statement.

Additionally, BNDHP CEO Jeff Davis will join Bright's leadership team.

"We look forward to working alongside Bright Health leadership to deliver robust healthcare options to more consumers in California and beyond," Davis said in a statement.

Last April, Business Insider reported that Bright achieved $145 million in gross revenue and lost $17.5 million in 2018, and also doubled its membership to more than 24,000.

The deal is subject to customary regulatory approval and Bright expects the transaction to close in 2020.