Molina Healthcare reported it will purchase Affinity Health Prepare for $380 million in dollars, growing the wellness insurer’s Medicaid federal government wellness gains companies deeper into New York.
Affinity, a Medicaid well being strategy with more than 280,000 subscribers in New York Town, Westchester, Orange, Nassau, Suffolk, and Rockland counties in New York, has $1.3 billion in yearly premium income.
“The acquisition of Affinity gives us with a stable foundation of membership and revenue and will deepen Molina’s service offerings in New York, making it possible for us to meet the desires of hundreds of thousands of extra Medicaid members,” Molina chief government officer Joe Zubretsky claimed. “The transaction gives added balance to Affinity’s Medicaid users and its point out spouse for the duration of this important time.”
It’s the most recent acquisition this year for Molina, a significant operator of government-sponsored health and fitness programs like Medicaid protection for weak Americans, Medicare positive aspects for seniors and personal protection regarded as Obamacare beneath the Inexpensive Treatment Act. Molina competes with Centene, Humana, UnitedHealth Group, Anthem and array of other health insurance coverage organizations in the organization of furnishing wellness benefits by using contracts with point out Medicaid plans and the federal governing administration.
Previously this year, Molina agreed to buy the Magellan Total Treatment line of health and fitness options from Magellan Overall health for $820 million, growing the well being insurer’s Medicaid and Medicare government well being advantages organizations into new markets.
“The addition of Affinity is nonetheless yet another important marker in activating our development method, and is a excellent item line and geographic in shape,” Zubretsky mentioned. “We imagine Molina’s strengths, which include its sturdy stability sheet and shown running abilities, will permit us to fortify the fiscal foundation of Affinity and improve the business’s expense framework and functioning margins.”