Molina Healthcare is including to its string of acquisitions with one other Medicaid managed care group. The insurer said on Tuesday that it has reached a definitive settlement to amass Affinity Well being Plan’s belongings for about $380 million in money.
New York-based Affinity serves about 284,000 Medicaid members in New York Metropolis and the encircling counties of Westchester, Orange, Nassau, Suffolk and Rockland. It’s been within the enterprise for 35 years. The corporate introduced in about $1.3 billion in premium income for the 12 months ending on July 31.
Molina’s President and CEO, Joe Zubretsky, mentioned the deal would deepen Molina’s choices in New York, and provides it a secure supply of membership and income in that market.
“The addition of Affinity is yet one more necessary marker in activating our progress technique, and is an ideal product line and geographic match,” he mentioned in a information launch. “We consider Molina’s strengths, together with its robust steadiness sheet and demonstrated working capabilities, will enable us to strengthen the monetary base of Affinity and enhance the enterprise’s value construction and working margins.”
Earlier this 12 months, Molina introduced plans to amass different Medicaid MCOs, together with Magellan Full Care and Passport Well being Plan. With its acquisition of Magellan, Molina would develop throughout six states, together with new markets in Arizona, Massachusetts and Virginia. The acquisition of Passport Well being would additionally jump start Molina’s new Medicaid contract with the state of Kentucky.
Molina expects the Affinity acquisition to shut within the second quarter of 2021, topic to federal and state regulatory approvals.
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