Molina Healthcare to buy Cigna’s Texas Medicaid contracts

Cigna is selling its Medicaid contracts in Texas to Molina Healthcare for $60 million, according to an April 22 news release.

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Under a definitive agreement, Cigna’s Texas Medicaid and dual Medicare-Medicaid plans will fold into Molina, adding about 50,000 Medicaid members to Molina’s rapidly growing managed care business. 

The Texas Medicaid plans brought in $1 billion in revenue during 2020.

Cigna and Molina expect the deal to close in the second half of 2021, pending regulatory approvals.

More articles on payers:
Biden administration revokes billions in Texas Medicaid funding
Stanford Health Care sues Anthem, alleges breach of implied contract
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