Molina Healthcare to Acquire Medicaid and MIChild Assets of HealthPlus in the State of Michigan

Molina Healthcare, Inc. (MOH) and HealthPlus of Michigan, Inc. jointly announced today that Molina Healthcare of Michigan, Inc., a wholly owned subsidiary of Molina Healthcare, Inc., has entered into a definitive agreement to acquire certain assets of the Medicaid and MIChild businesses of HealthPlus of Michigan and its subsidiary, HealthPlus Partners, Inc.
As a part of the transaction, Molina Healthcare of Michigan will assume HealthPlus Partners’ Medicaid contract and HealthPlus of Michigan’s MIChild contract, as well as certain provider agreements. HealthPlus Partners and HealthPlus of Michigan currently arrange for healthcare services for approximately 90,000 Medicaid and 6,000 MIChild patients.
“Medicaid has been a significant growth product for HealthPlus in recent years, especially with the Healthy Michigan expansion,” said Nancy Jenkins, president and CEO of HealthPlus of Michigan. “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. A key factor in our decision to enter into a transaction for our Medicaid and MIChild business with Molina Healthcare was Molina’s shared dedication to providing members with unparalleled customer service and high quality care through innovative care models.”
“Molina Healthcare of Michigan is excited about this opportunity to expand our health plan in the State of Michigan,” said Stephen Harris, president of Molina Healthcare of Michigan. “This agreement with HealthPlus further reinforces our commitment to the Medicaid and MIChild programs, the State and the local provider community. We look forward to a smooth transition and delivering on our commitment to provide quality care for our members.”
Molina Healthcare will fund the transaction with available cash on hand. Subject to regulatory approvals and the satisfaction of other closing conditions, the closing of the transaction is expected to occur during the third quarter of 2015.