Insurer Molina Healthcare is seeking to gain a foothold in Illinois’ managed care business with the $50 million acquisition of managed care organization NextLevel Health Partners.
The acquisition, announced Monday, gives Molina access to approximately 50,000 Medicaid and managed long-term care services in Cook County, Illinois. This is the latest deal Molina has made to expand its Medicaid business offerings.
“Acquiring NextLevel Health increases our footprint in the state of
Molina said the deal, funded via the company’s available cash, will likely close early this year.
NextLevel Health’s estimated premium revenue for 2019 was likely approximately $270 million, the insurer added.
The deal comes as Molina, which draws a majority of its business from government programs, acquired the Medicaid business of New York-based YourCare Health Plan for $40 million in October 2019.
Molina also was awarded a new five-year contract from Kentucky to help manage its Medicaid business. The insurer was among five to get a contract.