The entrepreneurs behind health insurance startup Oscar face plenty of challenges in scaling a young health insurance business in the face of long-established, national payer players. Now they have a new potential source of concern, in the form of fellow insurance startup Bright Health. Ironically, it’s led by Bob Sheehy, former CEO of one those established players, UnitedHealthcare.
Bright Health has raised an $80 million Series A to support a national rollout to the health insurance marketplace for individuals. Bessemer Ventures and New Enterprise Associates led the round, according to a company statement. Flare Capital Partners and other investors also took part.
Both Oscar and Bright Health are betting that leveraging digital health and being younger companies could give them an advantage despite the many regulatory hurdles of building an insurance business.
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
In addition to Sheehy, Bright Health co-founders include Kyle Rolfing, the president, who was co-founder and former CEO of Definity Health and RedBrick Health. There’s also Dr. Tom Valdivia, the chief medical officer, who is a former chief health consumer officer of Definity Health.
The plan is to be in its first market in the 2017 plan year. It will use broker partners to offer its plan to consumers as well as public and private health insurance exchanges, the statement said. Partnerships with providers and Medicare Advantage Plans are part of its long-term plans for 2018.
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