The Managed Care-giant Molina Health, Inc. (NYSE: MOH) has announced a deal with Cigna (NYSE: CI). Molina is purchasing Cigna’s Texas Medicaid and Medicare-Medicaid Plans (MMP) for $60 million. As of December 31, 2020, Cigna’s Texas MMP business served approximately 48,000 Medicaid members in the STAR+PLUS program in the Hidalgo, Tarrant, and Northeast service areas, and approximately 2,000 MMP members in the Hidalgo service area. In 2020, the business generated a premium revenue of approximately $1.0 billion.
This transaction is a huge boost into the Texas Medicaid and Medicare market, another step in Molina’s path for growth. Throughout 2020, the company announced a string of acquisitions, quickly expanding its network through M&A. According to search results in our Health Care Deals Database, the last deal the company announced was back in September when Molina acquired Affinity Health Plan for $380 million. Affinity is a Medicaid-managed care organization serving members in New York City, Westchester, Orange, Nassau, Suffolk, and Rockland counties in New York.
Molina announced a larger deal in late April 2020, 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.