Bright Health's stock slid on Tuesday after the company reported losses of $43 million for the second quarter.
Shares of Bright Health Group Inc. closed down 22.25% following the Tuesday morning release of the company's second-quarter results. The filing is the first quarterly update for the Minneapolis-based health insurance startup since it went public in late June.
Bright Health's total revenue was $1.11 billion in the quarter ending June 30, which is a 275% increase over the same period last year. The company credits those results to the 2020 open-enrollment period and a special enrollment period for the commercial business. Bright HealthCare membership grew to 662,825 people, up 220% from a year ago.
However, the $43 million loss is roughly $25.6 million bigger than the year-ago period.
The company's total operating expenses were $1.17 billion, with over $900 million of that going towards medical costs.
“We began our journey as a public company with strong second quarter results, demonstrating significant growth across both NeueHealth, our personalized care delivery business, and Bright HealthCare, our healthcare financing and distribution business,” said President and CEO Mike Mikan in a news release. “We are focused on changing healthcare in America for consumers and our care partners through our alignment model which has shown to make healthcare more personal, simple, and affordable."
Bright's medical cost ratio, which is calculated by dividing total expenses paid by the total premiums it collected, was 86.8% on a reported basis, up from 80.1% in the second quarter of 2020.
Last month, UnitedHealth Group also reported its profits were down. That could indicate more Americans are addressing routine health concerns after delaying non-Covid, non-emergency care.
For the full-year, Bright projects revenue to be between $4 billion and $4.2 billion.
“As we step back and look at year-to-date 2021 compared to the first half of 2020, our growth and ability to demonstrate performance is truly remarkable," said Cathy Smith, chief financial and administrative officer.
Bright Health's $924.3 million initial public offering was the largest IPO by a Minnesota-based company.
Shares are now hovering at $8 on Tuesday afternoon' they debuted on the NYSE at $18 per share.
