True Health NM to be sold
Minnesota-based firm to pay $22M for insurer; no layoffs expected
True Health New Mexico has been acquired by a Minnesota-based company pending regulatory approval, officials announced in a news release this week.
True Health parent company Evolent Health has agreed to sell the firm to Minneapolisbased Bright Health Management Inc. for $22 million, plus “excess above capital reserves,” said True Health president and CEO Mark Epstein.
True Health members, providers and brokers should not notice any difference day-today — the company’s medical management services and plan products will stay the same, as will ID cards, he said. Evolent will continue to provide “backoffice” administrative services and clinical program support, and True Health’s branding will not change. The company will maintain its Albuquerque headquarters, its leadership team will stay in place, and no layoffs are expected among True Health’s 65 or so staff members.
“All the operational aspects that our key stakeholders experience will stay the same,” Epstein said. “... Basically what is going to change is we have a new investor owner who through 2021 and beyond will continue to invest in New Mexico and True Health New Mexico to help us grow our services and our platform. ... What people will notice over time is growing offerings and opportunities.”
True Health New Mexico, which was founded about three years ago, has roughly 34,000 members after the latest open enrollment period. The company doesn’t offer Medicaid programs, but serves about a quarter of New Mexicans who have individual insurance through healthcare.gov, and significant portions of the small group and large group insurance markets as well, according to Epstein.
The deal is still subject to approval by the New Mexico Office of Superintendent of Insurance.
Epstein said Friday the company is “on track to get them all the right forms,” and he doesn’t see any obstacles. He said he expects the deal to close in the first half of 2021 — or ideally in the first quarter.