Molina Healthcare of Michigan Inc. will acquire certain assets of the Medicaid and MIChild businesses of Flint-based HealthPlus of Michigan and its subsidiary, HealthPlus Partners Inc. The transaction is expected to close in the third quarter.
"Medicaid has been a significant growth product for HealthPlus in recent years, especially with the Healthy Michigan expansion," says Nancy Jenkins, president and CEO of HealthPlus. "However, this strategic move will provide us the needed capital to maintain the HealthPlus brand as well as to strengthen and grow our Medicare and commercial lines of business."
HealthPlus Partners and HealthPlus arrange for health care services for about 90,000 Medicaid and 6,000 MIChild patients (a health insurance program for uninsured children). Molina will assume HealthPlus Partners' Medicaid contract and HealthPlus’ MIChild contract.
"This agreement with HealthPlus further reinforces our commitment to the Medicaid and MIChild programs, the state, and the local provider community," says Stephen Harris, president of Molina.
Harris says Molina operates Medicaid and Medicare health plans with a total membership of about 256,000 people. Molina Healthcare will fund the transaction with available cash.