Molina Healthcare to Acquire Medicaid and MIChild Assets of HealthPlus in the State of Michigan
May 15 2015 - 4:05PM
Business Wire
Molina Healthcare, Inc. (NYSE: MOH) and HealthPlus of Michigan,
Inc. jointly announced today that Molina Healthcare of Michigan,
Inc., a wholly owned subsidiary of Molina Healthcare, Inc., has
entered into a definitive agreement to acquire certain assets of
the Medicaid and MIChild businesses of HealthPlus of Michigan and
its subsidiary, HealthPlus Partners, Inc.
As a part of the transaction, Molina Healthcare of Michigan will
assume HealthPlus Partners’ Medicaid contract and HealthPlus of
Michigan’s MIChild contract, as well as certain provider
agreements. HealthPlus Partners and HealthPlus of Michigan
currently arrange for healthcare services for approximately 90,000
Medicaid and 6,000 MIChild patients.
“Medicaid has been a significant growth product for HealthPlus
in recent years, especially with the Healthy Michigan expansion,”
said Nancy Jenkins, president and CEO of HealthPlus of Michigan.
“However, this strategic move will provide us the needed capital to
maintain the HealthPlus brand as well as to strengthen and grow our
Medicare and commercial lines of business. A key factor in our
decision to enter into a transaction for our Medicaid and MIChild
business with Molina Healthcare was Molina’s shared dedication to
providing members with unparalleled customer service and high
quality care through innovative care models.”
“Molina Healthcare of Michigan is excited about this opportunity
to expand our health plan in the State of Michigan,” said Stephen
Harris, president of Molina Healthcare of Michigan. “This agreement
with HealthPlus further reinforces our commitment to the Medicaid
and MIChild programs, the State and the local provider community.
We look forward to a smooth transition and delivering on our
commitment to provide quality care for our members.”
Molina Healthcare will fund the transaction with available cash
on hand. Subject to regulatory approvals and the satisfaction of
other closing conditions, the closing of the transaction is
expected to occur during the third quarter of 2015.
About Molina Healthcare of Michigan, Inc.
Molina Healthcare of Michigan currently operates Medicaid and
Medicare health plans with total membership of approximately
256,000 as of March 2015. Additionally, Molina Healthcare of
Michigan is a certified Qualified Health Plan issuer on the
Michigan Health Insurance Exchange in the non-group health
insurance market in Wayne, Oakland and Macomb counties.
About Molina Healthcare, Inc.
Molina Healthcare, Inc., a FORTUNE 500 company, provides quality
and cost-effective Medicaid-related solutions to meet the health
care needs of low-income families and individuals and to assist
state agencies in their administration of the Medicaid program.
Molina’s licensed health plans in 11 states and the territory of
Puerto Rico currently serve over 3 million members, and its
subsidiary Molina Medicaid Solutions provides business processing
and information technology administrative services to Medicaid
agencies in Idaho, Louisiana, Maine, New Jersey, and West Virginia,
and drug rebate administration services in Florida. More
information about Molina Healthcare is available at
molinahealthcare.com.
About HealthPlus of Michigan, Inc.
HealthPlus of Michigan, Inc. is a health and wellness
organization providing customized, nationally recognized health
plans that meet the needs of large and small employers, families,
and individuals through a variety of commercial and Medicare health
plans. HealthPlus is proudly headquartered in Flint, Mich., and was
formed in 1979 as a not-for-profit organization. The company serves
approximately 6,000 MIChild members through its contract with the
Michigan Department of Health and Human Services. More information
about HealthPlus is available at healthplus.org.
About HealthPlus Partners, Inc.
HealthPlus Partners, Inc. is a wholly owned subsidiary of
HealthPlus of Michigan. Through a direct contract with the Michigan
Department of Community Health, HealthPlus Partners serves
approximately 90,000 Medicaid members in Bay, Genesee, Lapeer,
Saginaw, Shiawassee and Tuscola counties.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains
“forward-looking statements” regarding the proposed transaction
among HealthPlus of Michigan, Inc., HealthPlus Partners, Inc. and
Molina Healthcare of Michigan, Inc. All forward-looking statements
are based on current expectations that are subject to numerous risk
factors that could cause actual results to differ materially. Such
risk factors include, without limitation, risks related to: the
satisfaction or waiver of closing conditions for the transaction,
successfully transitioning and integrating HealthPlus’ members into
Molina’s Michigan health plan, attrition in membership pending the
completion of and following the transition, maintaining provider
relations, accurately estimating incurred but not reported medical
costs with respect to this new population, and the possibility that
the transaction will not be completed on a timely basis or at all.
Additional information regarding the risk factors to which Molina
Healthcare is subject is provided in greater detail in its periodic
reports and filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K. These reports
can be accessed under the investor relations tab of Molina
Healthcare’s website or on the SEC’s website at www.sec.gov.
Given these risks and uncertainties, Molina Healthcare can give no
assurances that its forward-looking statements will prove to be
accurate, or that any other results or events projected or
contemplated by our forward-looking statements will in fact occur,
and Molina Healthcare cautions investors not to place undue
reliance on these statements. All forward-looking statements in
this release represent Molina Healthcare’s judgment as of the date
hereof, and Molina Healthcare disclaims any obligation to update
any forward-looking statements to conform the statement to actual
results or changes in our expectations that occur after the date of
this release.
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Molina Healthcare, Inc.Juan José Orellana, 562-435-3666Investor
RelationsorLeigh Woodward, 562-233-4532Public
RelationsorHealthPlusKathy Bilitzke,
810-600-8045kbilitzke@healthplus.org
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