Bright Health amends credit facility

Bright Health Group entered into an amendment to its credit facility with J.P. Morgan that will reduce the final repayment amount by approximately $30M to approximately $298M Upon payment of such amount, which is expected to be made concurrently with the closing of the sale of the Company’s California Medicare Advantage business, the Company’s secured debt will be eliminated. The Company expects to use the remaining proceeds from the MA Sale to meaningfully improve the capital position of Bright Health’s continuing business. The Company expects the MA Sale to close on or about January 1, 2024, and has received all required regulatory approvals. Upon closing of the MA Sale and the repayment of its secured debt, the Company expects to begin 2024 with approximately $90M of unregulated cash. In addition, the Company expects to have approximately $155M in excess cash surplus after reserving for expected medical costs and other anticipated wind-down expenses in its discontinued insurance business. Additionally, subject to adjustments and the conditions in the MA Sale agreement, the Company expects to receive an additional $110M from escrow. The Company intends to use such funds if and when received to offset liabilities in its discontinued ACA insurance business, such as the obligations under the CMS Repayment Agreements which come due on or before March 14, 2025. In 2024, Bright Health will solely focus on its continuing business, NeueHealth, increasing access to high-quality healthcare through its differentiated, value-driven care model that serves all populations across the ACA Marketplace, Medicare, and Medicaid.