Molina Healthcare, Inc. announced on June 30 that it has entered into a definitive agreement to acquire 100% of the issued and outstanding capital stock of Bright Health‘s California subsidiaries, Brand New Day and Central Health Plan of California.
The purchase price for the transaction is approximately $510 million, which Molina intends to fund with available funds including cash on hand. The transaction is expected to close in the first quarter of 2024.
Universal Care, doing business as Brand New Day, was founded in 1983 by the Davis family to improve health outcomes through an emphasis on complex care management, population health and strong relationships between patients and their primary care physicians. Brand New Day is a Medicare Advantage prescription health plan available in 23 California counties.
Central Health Plan of California, located in Diamond Bar, California, offers a variety of Medicare plans for its members.
Molina Healthcare, a Fortune 500 company, provides managed healthcare services under the Medicaid and Medicare programs and through the state insurance marketplaces. Through its locally operated health plans, Molina Healthcare served approximately 5.3 million members as of March 31, 2023, located across 19 states.
According to data captured in the LevinPro HC database, this transaction marks the 15th Managed Care transaction of 2023. This transaction also represents Molina’s first acquisition of 2023. The company announced two deals during 2022 with the additions of My Choice Wisconsin for $150 million in July 2022 and AgeWell New York’s Medicaid Managed Long Term Care business for an undisclosed price in October 2022.
