Startup Insurers Post Major Losses, With Bright Health in Liquidity Hot Water
Three publicly traded startup insurers all posted losses for the full year 2022, and one firm — Bright Health Group, Inc. — may be on its last legs. A managed care insider tells AIS Health, a division of MMIT, that while Oscar Health, Inc. may have righted the ship and Clover Health Investments Corp. didn’t perform as poorly as expected, Bright is in bad shape.
Bright took in revenue of $551.4 million and posted a net loss of $188.2 million, or negative earnings before interest, taxes, depreciation and amortization (EBITDA) of $108.5 million over 2022, with a medical loss ratio (MLR) of 93.9%. Oscar took in revenue of $3.96 billion against operating expenses of $4.55 billion, posting a net loss of more than $609 million during 2022, with an 85.3% MLR. Clover took in $3.4 billion and reported $298.7 million in negative EBITDA during 2022, with MLR at 91.8%.