Molina aims to expand Medicaid business with $50M acquisition of NextLevel Health Partners

Molina Healthcare website
Molina Healthcare made another deal to improve its Medicaid managed care business by acquiring NextLevel Health Partners. (Molina Healthcare)

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 Illinois, enables us to scale our existing business platform, and provides additional operating cost leverage,” said Pam Sanborn, president of Molina Healthcare of Illinois, in a statement. “The existing base of acquired assets also provides Molina with expansion opportunities for our Medicare-Medicaid Plan and Marketplace offerings.”

RELATED: Molina premium revenue down in Q3 but beats company outlook

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.

RELATED: Molina Healthcare optimistic about ACA plan risk pools

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.

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