September 11, 2023
Payers | Tea Leaves
  • The collapse of insurtechs Bright Health and Friday Health Plans might mean that legacy health insurers in states where Bright and Friday operated will not receive over $1 billion worth of expected risk adjustment transfer payments, according to an expert who follows the insurtech industry. That spells trouble for health plans such as Florida Blue, Health Care Service Corporation, Medica, Centene, and Molina Healthcare, who might very well have to pay the price for Bright and Friday’s overreach. Under the Affordable Care Act, risk adjustment in individual plans is transferred to other plans at the end of every year, the idea being that financially better-off insurers can help struggling insurers who may have a larger population of sicker members. (Article here)