Molina Healthcare will acquire Cigna's Medicaid assets in Texas for $60 million, the insurers announced Thursday.
Molina will fund the acquisition with cash on hand, and the deal is expected to close in the second half of the year, pending regulatory approvals.
“Acquiring Cigna’s Texas Medicaid business provides us with a stable base of membership and revenue that will deepen Molina’s service offerings in Texas, allowing us to meet the needs of thousands of additional Medicaid and MMP members," Molina Healthcare said in a statement. "The transaction demonstrates continued execution and is nicely representative of our growth strategy.”
As of December 2020, Cigna's Medicaid and Medicare-Medicaid plan assets in Texas served approximately 50,000 people and accounted for $1 billion in premium revenue, according to the announcement.
“We are proud of the positive impact we have made on customer lives through our Texas Medicaid business, and are confident that Molina will build on our work to improve their health, well-being, and peace of mind," Cigna said in a statement. "We remain fully committed to the state of Texas, and look forward to continuing to bring affordable, predictable, and simple health care solutions to the millions of Texans we serve through our Medicare, Commercial, and Health Services businesses.”
Molina has been aiming for growth of late, and has unveiled other acquisitions to expand its footprint. In September, the insurer announced that it would acquire Medicaid managed care organization Affinity in a deal valued at $380 million.