medicaid

Molina Healthcare Expands in Upstate New York

Molina Healthcare (NYSE: MOH) has been off the acquisitions circuit for some time, as management issues were being worked out. The insurer’s last completed deal was announced in April 2016, in fact.

That transaction targeted Universal American‘s (NYSE: UAM) Total Care Medicaid plan, a prepaid health services plan providing health care coverage to approximately 39,000 members under the Medicaid and Child Health Plus programs in the three upstate New York counties of Cortland, Onondaga and Tompkins. The sale netted Universal American $41.3 million.

In mid-October, Molina broke its streak with the acquisition of certain Medicaid assets of YourCare Health Plan, Inc., a not-for-profit subsidiary of Monroe Plan for Medical Care, for $40 million. The deal includes 46,000 Medicaid members in seven counties in western New York and the Finger Lakes regions.

YourCare’s estimated premium revenue for the full year of 2019 is approximately $285 million. Monroe and its affiliate MP CareSolutions will continue to provide certain management and administrative services related to member care and provider relations.

Molina actually did agree to an acquisition in August 2016, for those managed care fans out there. The company was ready to pay $117 million to Aetna (then NYSE: AET) for its Medicare assets in Connecticut and Kentucky, with a total of 290,000 members. The sale’s consummation hinged on Aetna’s proposed merger with Humana (NYSE: HUM), which was called off in April 2017 after being challenged successfully by the Federal Trade Commission. A swing and miss for all involved.

 

 

 

 

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