Molina Healthcare Completes Acquisition of the Total Care Medicaid Plan in Upstate New York from Universal American
August 01 2016 - 4:30PM
Business Wire
Molina Healthcare, Inc. (NYSE: MOH) and Universal American Corp.
(NYSE: UAM) jointly announced today that Molina has completed its
acquisition of Universal American’s Total Care Medicaid plan. As a
result, approximately 38,000 Total Care Medicaid members will now
be a part of Molina Healthcare.
“We are looking forward to welcoming and sharing our care model
with our newest members in New York,” said J. Mario Molina, MD,
president and chief executive officer of Molina Healthcare, Inc.
“With the completion of this acquisition, Molina now operates
health plans in the five largest Medicaid markets in the country
and we are proud to continue carrying out our mission of providing
access to high-quality health care to people receiving government
assistance as we’ve done for more than 35 years.”
Total Care is a prepaid health services plan that provides
health insurance coverage in New York. Total Care covers
approximately 38,000 members of the Medicaid Managed Care, Health
and Recovery Plans (HARP) and Child Health Plus (CHP) programs in
four counties: Cortland, Onondaga, Oswego and Tompkins. Under the
terms of the agreement, Molina has acquired all the outstanding
equity interests of Today’s Options of New York, Inc., which
operates the Total Care Medicaid plan.
“Total Care has a long history serving the central New York
community, and we will continue to work closely with the New York
State Department of Health, local providers and community
organizations to serve our members, but now as part of the Molina
Healthcare extended family,” said Colleen Schmidt, president of
Total Care. “We’re confident that this will be a seamless
transition given Molina’s focus on government health care
assistance programs. Molina shares a similar mission and values
with Total Care, and we are excited to tap into the knowledge,
experience and resources that Molina brings.”
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 believe that
Molina’s extensive experience in Medicaid will allow for continued
improvements to the plan for the benefit of its members. We want to
thank all the Total Care employees for their dedication,
professionalism and hard work.”
About Molina Healthcare
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed
health care services under the Medicaid and Medicare programs and
through the state insurance marketplaces. Through our locally
operated health plans in 12 states across the nation and in the
Commonwealth of Puerto Rico, Molina currently serves approximately
4.3 million members. Dr. C. David Molina founded our company in
1980 as a provider organization serving low-income families in
Southern California. Today, we continue his mission of providing
high quality and cost-effective health care to those who need it
most. For more information about Molina Healthcare, please visit
our website at molinahealthcare.com.
About Universal American Corp.
Through its family of healthcare companies, Universal American
provides health benefits to people covered by Medicare. The company
is dedicated to working collaboratively with healthcare
professionals, especially primary care physicians, in order to
improve the health and well-being of those they serve while
reducing healthcare costs. More information about Universal
American is available at universalamerican.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains
“forward-looking statements” regarding the transaction between
Universal American Corp. and Molina Healthcare, 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 ability of Today’s Options of New
York, Inc. (“TONY”) to maintain relationships with customers and
employees following the announcement of this transaction; the
integration of the operations and employees of TONY into Molina
Healthcare’s business; the retention and renewal of TONY’s business
contracts; synergies from the proposed transaction; and TONY’s
future financial condition and operating results. Additional
information regarding the risk factors to which the parties are
subject is provided in greater detail in their respective periodic
reports and filings with the Securities and Exchange Commission,
including each party’s most recent Annual Report on Form 10-K.
These reports can be accessed under the investor relations tab of
each party’s website or on the SEC’s website at sec.gov. Given
these risks and uncertainties, neither party can give assurances
that its forward-looking statements will prove to be accurate, or
that any other results or events projected or contemplated by its
forward-looking statements will in fact occur, and each party
cautions investors not to place undue reliance on these statements.
All forward-looking statements in this release represent the
parties’ judgment as of the date hereof, and each party disclaims
any obligation to update any forward-looking statements to conform
the statement to actual results or changes in a party’s
expectations that occur after the date of this release.
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Molina HealthcareInvestor Relations:Juan José Orellana,
562-435-3666orPublic Relations:Sunny Yu, 562-901-1039orUniversal
American Corp.Adam Thackery, 914-597-2939Chief Financial
Officer
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