Molina closed its acquisition of AgeWell, a Medicaid long-term care business, for $110 million, according to a release from the company. The payer will pick up 13,000 members from New York-based AgeWell who are chronically ill or disabled and covered by AgeWell’s long-term care services. AgeWell’s full-year 2020 premium revenue for its members was about $700 million, Molina said last year upon announcing the deal.
Molina is focusing heavily on acquisitions as a key part of its overall growth strategy, CEO Joe Zubretsky has said previously.
The latest deal, funded with cash on hand, follows others in which the payer has snapped up companies that help build on its core business of providing health coverage through government programs.
In July, Molina announced it would pay $150 million to acquire My Choice Wisconsin, a Medicaid managed care organization with more than 44,000 members across the state.
In January, Molina closed another deal acquiring rival health insurer Cigna’s Medicaid contracts in Texas for about $60 million in cash in exchange for approximately 50,000 new members.
The insurer revised its full-year financial outlook as membership grew in its second quarter earnings report this year.
In Q2, the payer’s premium revenue increased 18% compared with the prior-year period as the Long Beach, California-based insurer saw membership increase 9% to 5.1 million members.