HealthcareBright Health under supervision in Tennessee

Bright Health under supervision in Tennessee


Bright Health Group can add Tennessee to the growing list of states concerned about its ability to meet its financial obligations.

Tennessee regulators placed the struggling health insurance company under supervision in November, according to Tennessee Department of Commerce and Insurance filings. Bright Health has been prohibited from spending more than $10,000 at a time without approval from Tennessee. The state also reserved the right to initiate legal, liquidation or delinquency proceedings against the company.

Bright Health disclosed this month that it needs to raise $300 million or risk shutting down by the end of the year. The company reported a $12.9 million shortfall among its state-regulated subsidiaries as of Dec. 31.

The insurtech’s money woes have attracted negative attention in a number of states. Florida regulators have had the company under supervision since last year, subject to similar limitations about spending as in Tennessee. The insurer also has operations in Alabama, Arizona, California, Colorado, Georgia, Illinois, New York, North Carolina, Ohio, South Carolina and Texas.

Under the Tennessee order, Bright Health may not transfer money from its Tennessee subsidiary to the parent company without clearance. The state also must grant permission for the company to transfer property, change management or eliminate insurance products. Bright Health must reimburse Tennessee for any expenses incurred to execute the supervision order. Bright Health’s Tennessee operation held $186 million as of Dec. 31, according to financial filings.

The Tennessee Department of Commerce and Insurance declined to disclose when they unsealed the supervision order, but believes doing so was in the public interest, a spokesperson wrote in an email.

Bright Health Group did not immediately respond to an interview request.



Original Source Link

Latest News

This $12 billion high speed rail will connect Las Vegas and Los Angeles and lay ‘the foundation for a new industry’

The goal is for the line to be up and running for the LA Olympics in 2028. Work...

Biden tries a White House reset on climate and trade

This article is an onsite version of our Trade Secrets newsletter. Premium subscribers can sign up here to...

Discord CEO Jason Citron on why gaming and group chats are the future of the internet

Today, I’m talking to Jason Citron, the co-founder and CEO of Discord, the gaming-focused voice and chat app....

Prosecutors Want Trump Threatened With Jail For Gag Order Violations

Neal Katyal said that prosecutors in Manhattan aren’t looking to fine Trump as much as they want Judge...

Must Read

- Advertisement -

You might also likeRELATED
Recommended to you