Molina Center, Molina Healthcare Inc. headquarters, is located at 200-300 Oceangate in Downtown Long … [+]
Molina Healthcare said it will buy the Magellan Complete Care line of health plans from Magellan Health for $820 million, expanding the health insurer’s Medicaid and Medicare government health benefits businesses into new markets.
Magellan Complete Care operates government health plans in six states including Arizona and statewide in Virginia with more than 150,o00 members and 2019 revenues of more than $2.7 billion. The deal announced Thursday afternoon allows Molina to enter three new states in Arizona, Massachusetts, and Virginia while expanding into the New York City market.
Once the acquisition of Magellan Complete Care closes, Molina said it will serve “more than 3.6 million members in government-sponsored healthcare programs in 18 states and will have 2020 pro-forma projected revenue of over $20 billion.”
“Through its Senior Whole Health branded plans, (Magellan Complete Care) provides fully integrated plans for Medicaid and Medicare dual beneficiaries in Massachusetts, as well as managed long term care in New York,” Molina said in announcing the deal Thursday afternoon.
Molina is a large operator of government-subsidized health plans including Medicaid coverage for poor Americans, Medicare benefits for seniors and individual coverage known as Obamacare under the Affordable Care Act. Molina competes with Centene, Humana, UnitedHealth Group, Anthem and array of other health insurance companies in the business of providing health benefits via contracts with state Medicaid programs and the federal government.
“Acquiring MCC expands our geographic footprint in our core businesses of managed Medicaid, dual eligibles, and long-term services and supports,” Molina president and CEO Joe Zubretsky said. “We believe it will allow us to scale our enterprise-wide platforms and benefit from both operating and fixed cost leverage. The acquisition plays to our strengths where our demonstrated operating capabilities put us in a unique position to improve the business’s margins.”