Bright Health

Bright Health, ranked #8, collapsed under rapid expansion into ACA marketplace plans without adequate infrastructure, leaving 300,000 policyholders stranded when 40% of providers refused coverage due to unpaid claims by 2023. This failure is 50% worse than #5 Molina’s network adequacy issues, as Bright Health exited most markets by 2024 after losing $5.6 billion, with state regulators in eight states citing the company for failing to maintain required financial reserves of $200 million. The average startup insurer retains a 70% provider acceptance rate, while Bright Health managed only 45%.