Colorado Attorney General Cynthia Coffman approved the sale of Grand Junction, Colo.-based Rocky Mountain Health Plans to Minnetonka, Minn.-based UnitedHealthcare for about $36 million, The Denver Post reports.
The attorney general issued an opinion Thursday stating the deal could legally move forward. Under the terms of the agreement, UnitedHealthcare will gain access to RMHP's Medicaid market and its 300,000 rural customers. In addition, RMHP will shift to a for-profit model and sell its stock to UnitedHealthcare.
The attorney general concluded RMHP most likely could not continue operating without the sale, as it has been consistently losing money.
The Colorado Division of Insurance is also reviewing the proposed sale, according to the report.