Long Beach, Calif.-based Molina Healthcare will add approximately 328,000 members to its roster through separate transactions with Aetna, Humana and Universal American.
Hartford, Conn.-based Aetna and Louisville, Ky.-based Humana entered into separate agreements with Molina Tuesday to sell certain Medicare Advantage assets for an estimated combined $117 million. The sale price was determined by the number of Medicare Advantage members in both transactions, estimated to be approximately 290,000 throughout 21 states.
Both transactions hinge on the completion of Aetna's looming acquisition of Humana, CMS approval and closing conditions such as state and other regulatory approvals, according to the report. Aetna and Humana expect to keep administering the involved plans for a transition period if the deals close.
Aetna CEO Mark Bertolini and Humana CEO Bruce Broussard believe their agreements with Molina address antitrust concerns in the U.S. Department of Justice's challenge to block the Aetna-Humana merger, according to the statement.
The Medicare Advantage plans in the transactions span the states of Alabama, Arkansas, Florida, Georgia, Illinois, Louisiana, North Carolina, Nevada, Ohio, Oklahoma, Texas, Virginia and West Virginia and certain Humana plans in Delaware, Illinois, Iowa, Kansas, Missouri, Nebraska, Ohio, Pennsylvania, South Dakota and Utah.
In addition to agreements with Aetna and Humana, Molina completed its acquisition of White Plains, N.Y.-based Universal American's Total Care Medicaid plan Monday, absorbing approximately 38,000 Medicaid members. Under the agreement, Molina acquired all outstanding equity interests of Total Care's operator, Today's Options of New York.
Universal's Medicaid plans are prepaid health services plans including Medicaid Managed Care, Health and Recovery Plans and Child Health Plus in four New York counties — Cortland, Onondaga, Oswego and Tompkins.
Richard Barasch, CEO of Universal American, said the sale will allow Universal to focus on its Medicare Advantage and Medicare ACO businesses. J. Mario Molina, MD, president and CEO of Molina, said acquiring the Total Care plans positions the insurer in five of the largest Medicaid markets in the nation.
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