- Molina Healthcare said Wednesday that it has agreed to pay $150 million to acquire My Choice Wisconsin, continuing the Long Beach, California-based insurer’s acquisition streak.
- The Wisconsin firm is a Medicaid managed care organization with more than 44,000 members across the state.
- My Choice Wisconsin generated premium revenue of $1 billion during the 12 months ended March 31, Molina said.
Acquisitions will be a key part of the company’s overall growth strategy, CEO Zubretsky has said previously.
Last year Molina bought Cigna’s Medicaid business in Texas for $60 million, expanding its reach in the Lone Star state. The insurer also reached a $110 million deal to buy AgeWell’s Medicaid long-term care business in New York, building on its prior New York acquisition of YourCare Health Plan, which netted 47,000 Medicaid members.
CEO Joe Zubretsky has said the company is strictly focused on expanding its core business lines of providing coverage through government sponsored programs.
The Wisconsin acquisition, subject to state and federal approvals, is expected to close in 2022.
Molina ended the first quarter with 5.1 million members, a 10% increase compared to the first quarter last year.
As increased costs weighed on hospitals amid a COVID-19 surge, insurers saw profits rise during the first quarter this year and painted an improved financial outlook for the remainder of the year.
Molina said it now expects to bring in premium revenue of $29.25 billion, compared with the prior estimate of $28.5 billion.