Molina Healthcare has entered into an settlement to amass Affinity Well being Plan in a deal valued at $380 million.
Affinity is a Medicaid managed care group serving about 284,000 members in New York Metropolis, Westchester, Orange, Nassau, Suffolk, and Rockland counties in New York state. It is premium income for the 12 months ending on July 31 was $1.2 billion, in response to the announcement.
Molina mentioned it plans to buy Affinity with money readily available.
“The addition of Affinity is yet one more necessary marker in activating our progress technique, and is an ideal product line and geographic match. We consider Molina’s strengths, together with its sturdy stability sheet and demonstrated working capabilities, will permit us to strengthen the monetary base of Affinity and enhance the enterprise’s price construction and working margins,” mentioned Joseph Zubretsky, president and CEO of Molina, in an announcement.
RELATED: Molina rakes in $276M in Q2 revenue, falling wanting Wall Road expectations
“The acquisition of Affinity supplies us with a steady base of membership and income and can deepen Molina’s service choices in New York, permitting us to fulfill the wants of tons of of 1000’s of further Medicaid members,” Zubretsky mentioned. “The transaction supplies added stability to Affinity’s Medicaid members and its state accomplice throughout this important time.”
Molina expects the deal to shut within the second quarter of 2021, pending regulatory approvals.
Molina has introduced a number of offers up to now a number of months that it expects to contribute to its progress plans. In July, it unveiled plans to amass Passport Well being’s Medicaid and twin eligibles enterprise traces, and in April introduced it will purchase Magellan Full Care from Magellan Well being in an $820 million deal.