Molina Healthcare, Inc. (NYSE: MOH) and Columbia United Providers, Inc.
(CUP) announced today that Molina Healthcare of Washington, Inc., a
wholly owned subsidiary of Molina Healthcare Inc., has entered into a
definitive agreement to acquire certain assets of CUP’s Medicaid
business. As a part of the transaction, Molina Healthcare of Washington
will receive the right to assume CUP’s Medicaid membership in the state
of Washington, as well as certain other rights and assets related to the
operation of the Medicaid business. Molina Healthcare of Washington will
fund the transaction with available cash. Subject to regulatory
approvals and the satisfaction of other closing conditions, the
transaction is expected to close during the first quarter of 2016.
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“CUP has provided excellent service to Medicaid members in Clark County
for more than 20 years. We are honored to welcome CUP members to Molina,
and we look forward to carrying on their commitment to the Southwest
Washington community and building upon our current relationships with
providers throughout the region,” said Peter Adler, president of Molina
Healthcare of Washington. “This proposed transaction allows Molina to
better serve the growing Medicaid population, maintain continuity of
care for CUP members, and further deepen our commitment to the Medicaid
program in Washington.”
CUP provides coverage for medical services throughout the Southwest
Region of Washington serving more than 55,000 Medicaid members in Clark
County.
“The best way to meet the needs of our community, and to maximize CUP’s
potential, is to join with the strengths and resources of a larger
Medicaid specialist,” explained Cynthia Finter, interim CEO of CUP.
“Molina’s track record for quality and innovation, as well as its focus
on serving those who qualify for government programs, will allow our
members to receive expanded capabilities while we continue our history
of service to our members and their providers. We are excited to work
closely with Molina, the top Medicaid plan in the state of Washington
and one of the leading national plans.”
About Molina Healthcare of Washington, Inc.
Molina Healthcare of Washington was established in 1985 and serves
nearly 570,000 members statewide. Molina contracts with the Washington
State Health Care Authority through Apple Health, the state Medicaid
program, to serve Medicaid members throughout the state. The Company
also manages a Medicare Special Needs Plan and participates in
Washington Health Exchange, the state based Marketplace, in several
counties across the state.
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. Through our locally operated health plans
in 11 states across the nation and in the Commonwealth of Puerto Rico,
Molina serves approximately 3.5 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 Columbia United Providers, Inc.
Founded in 1994, Columbia United Providers, Inc. is a health plan,
committed to providing coverage for high quality care and services for
the community. More information about Columbia United Providers is
available at cuphealth.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 Columbia United
Providers, Inc. and Molina Healthcare of Washington, 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, including the receipt of regulatory approvals; successfully
transitioning and integrating Columbia United Providers’ members into
Molina Healthcare of Washington; attrition in membership pending the
completion of and following the transition; maintaining provider
relations; accurately estimating medical costs with respect to this
population; the receipt of a contract award from the Washington State
Health Care Authority’s RFP process for Clark and Skamania Counties; 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 its 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 its
expectations that occur after the date of this release.
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