Molina Healthcare Continues Its Acquisition Spree
Managed care organization Molina Healthcare completed its $60 million buyout of Cigna’s Texas Medicaid contracts. The buyout highlights a greater growth trend in Medicaid managed care as Medicaid programs continue to expand across states. Since the pandemic, enrollment in Medicaid/CHIP has grown by 16%.
The buyout will add around 50,000 Medicaid beneficiaries to Molina’s patient pool, a number that could bring in nearly $1 billion in additional revenue per year. Molina is no stranger to acquisitions—the company has acquired several other Medicaid companies since 2020:
- Magellan Health’s Magellan Complete Care line of business, which brought in 200,000 Medicaid members.
- YourCare, which added 47,000 Medicaid members in several New York counties.
- Passport, which added 315,000 Medicaid members in Kentucky.
- Affinity Health Plan, acquired for $380 million and added 284,000 Medicaid members in New York City, Long Island and Westchester.
Medicaid enrollment is at all-time highs and Medicaid managed care organizations are trying to get a bigger piece of the Medicaid pie. At the same time, companies like Cityblock are digging deeper in the Medicaid innovation space while women’s health company Maven Clinic is expanding into Medicaid, moving beyond its focus on employer-sponsored insurance. CEO of Caremore Dr. Sachin Jain and Alyssa Jaffee, partner at 7wireVentures, think the Medicaid space is ripe for innovation.