It has been an eventful year for Molina Healthcare (NYSE: MOH). With two acquisitions already on the books for 2020, the company has announced a third. Last week, Molina Healthcare purchased New York-based Affinity Health Plan for $380 million in cash, net of expected tax benefits.
Affinity is a Medicaid managed care organization serving members in New York City, Westchester, Orange, Nassau, Suffolk and Rockland counties in New York. The organization currently has 284,000 members and premium revenues of $1.3 billion. The acquisition expands Molina’s market in New York and is immediately accretive to adjusted earnings per share.
Molina Healthcare last announced a deal in July for 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 acquired 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.
Molina announced a larger deal back in late April, acquiring Magellan Complete Care from Magellan Health (NASDAQ: MGLN) for $850 million, according to search results in our HealthCareMandA.com Deal Database. 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.
