Molina Healthcare, Inc. (NYSE: MOH) has been on an M&A marathon for the past year, expanding into multiple new states and increasing its presence in others. On July 17, the company acquired certain assets related to the Medicaid and Dual Eligible Special Needs Plans (DSNP) lines of business from Passport Health Plan in Kentucky. The deal was valued at $20 million in cash, plus contingent consideration that is payable in 2021 based on Molina’s Kentucky Health Plan’s open enrollment results in 2020.
The acquisition of the Passport lines of business allows Molina to enhance operational readiness and promote continuity of care for members in advance of Molina’s new contract award in the Kentucky Medicaid market. As part of the transaction, Molina will acquire the Passport name, a well-known brand in Kentucky.
Molina Healthcare’s Kentucky health plan is expected to begin on January 1, 2021, and is one of five managed care organizations selected to offer health care coverage to approximately 1.4 million Medicaid beneficiaries through the Commonwealth of Kentucky’s TANF, CHIP and ABD programs.
On July 1, the managed care company closed its previously announced acquisition of certain assets of YourCare Health Plan, Inc., a not-for-profit subsidiary of Monroe Plan for Medical Care. The deal includes 46,000 Medicaid members in seven counties in western New York and the Finger Lakes regions. Molina Healthcare committed $40 million to purchase the assets.
Molina announced a large deal back in late April, acquiring Magellan Complete Care from Magellan Health (NASDAQ: MGLN) for $850 million. With the addition of MCC’s approximately 155,000 members, Molina will serve more than 3.6 million members in government-sponsored healthcare programs in 18 states. Molina will get an expanded footprint in the New York market and added Arizona, Massachusetts, and Virginia to its Medicaid portfolio. According to DSO, that’s the largest transaction by price Molina has announced thus far.
