Molina Healthcare, Inc. has announced that it has amended its purchase agreement for the acquisition of Bright HealthCare’s California Medicare business. The purchase price for the transaction was previously announced to be $510 million but has been reduced to approximately $425 million, according to a December 18 press release from Molina Healthcare. The transaction was originally announced in June 2023.
Bright HealthCare is an American health insurance company based in Minneapolis, Minnesota. The business being sold expects a 2023 premium revenue of $1.8 billion, according to the Molina press release.
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 5.2 million members as of September 30, 2023, located across 19 states.
The transaction expands Molina’s Medicare presence in California and is expected to add $1.00 per share to earnings generated from the newly incorporated business. The transaction is expected to close on or around January 1, 2024.
