LONG BEACH, CA & WHITE PLAINS, NY — Molina Healthcare and Universal American Corp. jointly announced that they entered into a definitive agreement in which Molina will acquire Universal American’s Total Care Medicaid plan in upstate New York
Total Care is a prepaid health services plan that provides health care coverage to approximately 39,000 members under the Medicaid and Child Health Plus programs in the three upstate New York counties of Cortland, Onondaga and Tompkins. Under the terms of the agreement, Molina will acquire all the outstanding equity interests of Today’s Options of New York, Inc., which operates the Total Care Medicaid plan, for a purchase price of $41.3 million, subject to closing date balance sheet adjustments. Molina will fund the transaction with available cash. The transaction is subject to regulatory approvals and other conditions and is expected to close in the third quarter of 2016.
“We look forward to participating in New York’s Medicaid managed care program,” said Dr. J. Mario Molina, president and chief executive officer of Molina Healthcare, Inc. “This transaction expands our footprint into the top five largest Medicaid markets across the county and serves to further our strategy of continued geographic diversification. Over the next several months we will work closely with the New York State Department of Health, local providers and community organizations to continue fulfilling our mission of providing access to high-quality care.”
Richard A. Barasch, chairman and chief executive officer of Universal American, commented, “With the sale of our Total Care Medicaid plan, we can better concentrate our efforts on our Medicare Advantage and Medicare ACO businesses. We improved the operations of the Total Care plan during our ownership and believe that Molina’s extensive experience in Medicaid will allow for continued improvements to the plan for the benefit of its members.”