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a stethoscope and money – hospitals and health insurance coverage from STAT — Bright Health is officially leaving the health insurance market. The company has agreed to sell its Medicare Advantage plans to Molina Healthcare. Adobe

Bright Health Group has agreed to sell its Medicare Advantage plans to its publicly traded peer Molina Healthcare.

Regulators must approve the deal. But the pending sale of its Medicare Advantage business means the financially distressed Bright has exited the health insurance market that the company was founded on. It will solely operate roughly 70 physician clinics located in California, Texas, and Florida.

Molina agreed to pay $600 million for Bright’s 125,000 California Medicare Advantage enrollees, which equates to about $4,800 for each person. The federal government paid insurance companies almost $12,000, on average, for each MA enrollee in 2022. Molina said in a news release that Bright’s current book of business generates $1.8 billion of revenue, or more than $14,000 for each member.

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