Molina Healthcare to buy Connecticut insurer for $350M
Molina Healthcare, a California-based insurer, is purchasing ConnectiCare, a health insurance company in Connecticut, for $350 million.
In an announcement, Molina said the cost represents “25% of expected 2024 premium revenue of $1.4 billion,” adding that the acquisition will bring in new earnings from health insurance exchanges.
While the agreement for the sale is final, it is subject to state and federal regulatory approval before closing. If approved, the acquisition will be completed in early 2025.
Founded in 1981, ConnectiCare serves 140,000 people in the state and its private insurance and Medicare plans are made available on both the Affordable Care Act insurance marketplace and the Connecticut insurance exchange, Access Health CT.
Molina said the acquisition “represents a strong strategic fit,” adding that ConnectiCare is “an established government business, recognized brand and a statewide provider network.” ConnectiCare is currently owned by EmblemHealth, a not-for-profit insurer based in New York City.
In the announcement, Molina President and CEO said the addition of ConnectiCare brings a “well-rounded government sponsored healthcare plan, and a new state, to our portfolio.”
Molina provides managed healthcare services for Medicaid and Medicare programs in 19 states. According to its website, it currently has 5.1 million members.
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