Bright Health Group Enters into Definitive Agreement with Molina Healthcare to Sell its California Medicare Advantage Business, Bolstering Capital Position to Continue Advancing its Value-Driven Care Model

Bright Health Group, Inc., the value-driven, technology-driven healthcare company, today announced that it has entered into a definitive agreement with Molina Healthcare, Inc. (“Molina”), for the sale of California Medicare Advantage, Brand New Day and the Central Health Plan business, for a total purchase price of $600 million.At the close, the proceeds from the sale will significantly strengthen Bright Health’s equity position. The Company intends to use the proceeds to meet its obligations to its bank lenders, the remainder of which will be used for the liabilities of the discontinued ACA insurance business. motion. Bright Health also announced that it has extended the waiver and revised its credit base.

“We are excited to enter into this agreement with Molina as it will allow Brand New Day and Central Health Plan to continue delivering localized, personal care to California consumers and will position Bright Health’s Consumer Care Delivery business for long-term success,”

“The sale allows us to focus on driving differentiation and sustainable growth through our Consumer Care Delivery business.”

Mike Mikan, President and CEO of Bright Health.

As part of the agreement, Bright Health Group’s Consumer Care Delivery business will enter into a supplier agreement with Molina to serve Medicaid and ACA Marketplace residents in Florida and Texas by 2024.

“We look forward to further focusing on our value-based, consumer-driven care model. We see great potential to expand relationships with key payor partners as we continue to increase access to simpler, more personal, and affordable health care,”

Mike Mikan, President and CEO of Bright Health.

The transaction is subject to regulatory approval and other closing conditions. The transaction is expected to close in early 2024 and is subject to financial conditions. Bright Health does not intend to comment or disclose further developments until the close of the transaction.Moelis & Company LLC acts as financial advisor to Bright Health and Simpson Thacher & Bartlett LLP acts as legal advisor to Bright Health.