Local insurance-technology startup Bright Health said Wednesday that it plans to acquire California-based Universal Care, which operates under the name Brand New Day.
Terms of the deal were not disclosed. If the transaction is approved by regulatory bodies later this year, Bright will officially be covering the country's three largest cities: New York, Chicago and Los Angeles.
The company now operates in a total of 34 markets in 13 states, serving approximately 200,000 members.
Minneapolis-based Bright Health provides health insurance to clients by partnering with a health system in each new market. The company calls these "personalized care networks" and through them offers individual, family and Medicare Advantage plans.
"[Brand New Day]'s integrated approach to serving vulnerable populations with complex conditions aligns closely with our Health Plan Care Partner model," Mike Mikan, Bright's president and vice chairman, said in a statement. "By combining our core strengths, we will be able to deliver an even better experience for our members across the country."
Brand New Day was founded in 1983 to improve health outcomes through an emphasis on complex care management and population health in 12 California counties. The current leadership, Jeff and Jay Davis, will join Bright and continue to lead local market operations.
In December, Bright Health secured $635 million in an oversubscribed Series D funding round, bringing the company's total equity raised to more than $1 billion. The company has wasted no time in putting its new funds to work.
In addition to acquiring Brand New Day, the company also hired former Target CFO Cathy Smith to lead its financial and legal teams. Bright also plans to use the capital to grow its team.
