Molina Healthcare, Inc. (NYSE: MOH) and Preferred Medical Plan, Inc.
(Preferred) today jointly announced that Molina Healthcare of Florida,
Inc., a wholly owned subsidiary of Molina Healthcare, Inc., has entered
into a definitive agreement to acquire certain assets of Preferred’s
Medicaid business in Florida.
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As a part of the transaction, Molina Healthcare of Florida will assume
Preferred’s Medicaid contract in Miami-Dade and Monroe Counties, as well
as acquire certain assets related to the operation of its Medicaid
business. The acquisition will complement Molina Healthcare’s existing
business in those counties. Molina Healthcare of Florida will fund the
transaction with available cash on hand at the parent company. 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. Wells Fargo Securities served as the
exclusive financial advisor to Preferred Medical Plan.
Since 1975, Preferred has provided comprehensive health care products in
South Florida and currently serves approximately 25,000 Medicaid members.
“We are committed to providing continuity of care to our new members in
South Florida and we will work closely with Preferred Medical Plan to
coordinate a smooth transition,” said Maritza Borrajero, president of
Molina Healthcare of Florida. “This transaction helps us to continue
solidifying our presence in the region while also demonstrating our
commitment to the Medicaid program and to the state.”
About Molina Healthcare of Florida, Inc.
Molina Healthcare of Florida is contracted with the Florida Agency for
Health Care Administration for both the Managed Medical Assistance (MMA)
and Long-term Care (LTC) components of the Statewide Medicaid Managed
Care (SMMC) program, serving a total of 25 counties under those combined
programs. Molina Healthcare of Florida also operates Medicare
Dual-Eligible Special Needs Plans in seven Florida counties, and offers
certified Qualified Health Plans to individuals on the Florida Health
Insurance Exchange in the non-group health insurance marketplace. Total
enrollment across all products approximates 350,000 as of March 2015.
About Molina Healthcare, Inc.
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed health
care services under the Medicaid and Medicare programs and through the
state insurance marketplaces. Molina serves more than 3 million members
through locally operated health plans in 11 states across the nation and
in the Commonwealth of Puerto Rico. Doctor C. David Molina founded the
company in 1980 as a provider organization serving low-income families
in Southern California. Today, the company continues 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 molinahealthcare.com.
About Preferred Medical Plan, Inc.
Since 1975, Preferred Medical Plan has been a leader in providing
comprehensive health care products in Florida. The company operates
Medicaid and Marketplace health plans in South Florida. More information
about Preferred Medical Plan is available at pmpmarketplace.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains “forward-looking
statements” regarding the proposed transaction between Preferred Medical
Plan, Inc. and Molina Healthcare of Florida, 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 Preferred
Medical Plan’s members into Molina’s Florida 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 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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