File this as rumor for now. According to a rival health insurance carrier that is on the ACA exchange, in Florida, the Department of Insurance will order Bright to leave Florida shortly. According to the source they will do the same in the state of Texas. So will Bright Healthcare leave Florida? We explore the ramifcations below.
Bright Healthcare In Florida
For the last few years Bright Healthcare has been a fantastic player in the ACA market in Florida and other states. They offer an EPO(Exclusive Provider Organization) that has a very broad doctor/hospital network. In addition the back office support and organization has been some of the best in the industry.
Did the American Rescue Plan Destroy Bright Healthcare?
This question might sound a bit alarming but I’ll explain further. The American Rescue Plan extended the amounts of money individuals could make in order to qualify for a tax credit for their health insurance on the marketplace. Whereas previously someone in their 60’s making $80,000 could never get an ACA plan with a tax credit- this now became the norm. In addition the marketplace stopped asking for proof of SEP’s (Special Election Periods) to get coverage. This is only speculation but the double whammy of individuals now being eligible for tax credits and the ability to sign up whenever they wanted. While this is great for the consumer its not good for a companies loss ratio.
A Scary Loss Ratio
In November of 2021 Bright Health reported a medical cost ratio(MCR) of 103%. In English this means that for every dollar they took in they were spending $1.03. Bright Healthcare blamed the loss on Covid however this made little sense as a year prior the loss ratio stood at 90.1%. While the loss ratio has come down some in 2022 they are a long way off to getting it under control.
Conclusion
With the uncertainty of this news and financial situation of Bright Healthcare we will be advising our current clients on Bright Health to seek another policy. Will Bright Healthcare Leave Florida? We don’t know yet but want to make sure our clients will be taken care of. If you have any questions about Bright Health or other health insurance please give us a call at 954-282-6891.
