Bright Health Group's Subsidiaries Secure $380M Repayment Agreements with Centers for Medicare & Medicaid Services

Author: Benzinga Newsdesk | September 19, 2023 07:12am

On September 14, 2023, each of Bright Health Group, Inc.'s insurance subsidiaries in Colorado, Florida, Illinois and Texas entered into repayment agreements with the Centers for Medicare & Medicaid Services ("CMS") with respect to the unpaid amount of their risk adjustment obligations for an aggregate amount of $380 million (the "Repayment Agreements"). The amount owing under the Repayment Agreements is due 18 months from September 15, 2023 (the date the first installment payment was made under the Repayment Agreements) and bears interest at a rate of 11.5% per annum. Failure to make payments in accordance with the Repayment Agreements, or entering into liquidation, rehabilitation, or early pre-liquidation, will result in a default under the Repayment Agreements, in which event the full balance of the amount owed under the Repayment Agreements will become immediately due and payable.

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