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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