Molina Healthcare will acquire My Choice Wisconsin, a Medicaid plan, for about $150 million.
The Medicaid managed care organization has offered services in the state for 22 years and, as of May, covered 44,000 Medicaid and managed long-term services and supports (MLTSS) members. That accounts for about $1 billion in premium revenue in the 12 months ending March 31.
MCW represents a “strong strategic fit” with Molina’s existing Medicaid portfolio, the insurer said in an announcement.
“The addition of My Choice Wisconsin to Molina’s expanding footprint is not only complementary to our existing Medicaid business in Wisconsin, but also representative of our strategic growth initiatives,” said Joe Zubretsky, CEO of Molina Healthcare, in a statement. “This announcement demonstrates our continuing success acquiring value enhancing revenue streams at attractive valuations.”
My Choice Wisconsin will help Molina build out is MLTSS business as well as its core Medicaid business in the state.
Molina said it plans to fund the deal with cash on hand and that it expects the acquisition to be immediately accretive to its earnings per share.
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